1. From a lesson module that you want to add Hypothes.is, click the "add existing blue button":
2. Click on More...
3. Click on Hypothes.is Reading under Third Party:
4. Make your selection for type of annotation:
5. Your Hypothes.is assignment should be created:
Note: Add any pdf files you want students to annotate in that module folder
This video is a good primer for how to annotate for students: