PM and PN are the perpendiculars from any point P on the rectangular hyperbola xy=c2 to the asymptotes.
If the locus of the mid point of MN is a conic, then its eccentricity is
OMPN is rectangle.
P=(ct,ct)
Mid point =(ct2,c2t)=(x,y) ∴ xy=c24⇒e=√2