Kinetiq
Kinetiq transforms locked HYPE into liquid, yield-bearing tokens through two core products: kHYPE (liquid staking) and Launch (HIP-3 exchange deployment).
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kHYPE: Liquid Staking Token
The Core Product
Stake HYPE, receive kHYPE - a liquid token that grows in value automatically while unlocking DeFi opportunities.
Same staking APY: ~2.2% base yield
Auto-compounding: kHYPE value increases automatically, no claiming needed
Instant liquidity: Trade or use kHYPE across Hyperliquid DeFi immediately
Automated delegation: StakeHub selects top-performing validators automatically
Key difference from native staking:
You lose (at least for the moment): HyperCore Staking Tiers benefits and Staking Referral Program
You gain: Full liquidity + DeFi composability + automated validator management
Staking Tiers Impact Analysis
Formula: Break-even APR = (Monthly_volume × 0.0003 × Tier_discount × 12) / Staked_value × 100 Break-even APR = rate required on the LST to offset the loss of hyperCore profits.
Wood
10
500
0.18%
0.72%
3.60%
Bronze
100
5,000
0.036%
0.144%
0.72%
Silver
1,000
50,000
0.0054%
0.022%
0.108%
Gold
10,000
500,000
0.0007%
0.003%
0.014%
Platinum
100,000
5,000,000
0.0001%
0.0004%
0.002%
Diamond
500,000
25,000,000
0.00003%
0.0001%
0.0006%
Bottom line: For small accounts with moderate trading activity, liquid staking isn't necessarily optimal from a pure APY perspective.
Note: This analysis doesn't include Staking Referral Program rewards, which can be substantial additional income lost when using liquid staking.
How to Use kHYPE
Getting Started:
Minimum stake: 5 HYPE
Transfer HYPE from HyperCore to HyperEVM via Portfolio → "Transfer to EVM"
Stake through Kinetiq dApp to receive kHYPE
Unstaking Options:
Direct unstaking: 7-day waiting period + 0.10% fee (avoid if possible)
Instant trading: Swap kHYPE on liquid markets - recommended method (captures all auto-compounded rewards without fees)
24-hour delay: New stakes have 24h withdrawal restriction
Available Trading Venues: • Laminar (EVM): kHYPE/HYPE pairs • Curve (EVM): kHYPE/HYPE stable pools • kHYPE AMM by Valantis: Native HYPE pairs • Project X (EVM): kHYPE/HYPE trading • HyperCore: Coming soon
DeFi Integration & Yield Stacking
kHYPE Composability:
Collateral: Use in Felix (feUSD), HypurrFi (USDXL), Hyperlend
Liquidity pools: Pair with HYPE, USDC on various DEXs
Automated strategies: Veda's kHYPE Earn vault
Kinetiq Earn Vault (by Veda):
Managed by Seven Seas: >$3.7B TVL track record
Auto-yield optimization: Curve LP, leveraged staking, protocol farming
Fees: 2% annual platform fee (pro-rated), no performance/entry/exit fees
Risk-adjusted: Vetted protocols, audit reviews, diversified strategies
StakeHub: Automated Validator Selection
How StakeHub works:
Real-time scoring: Validators rated 0-100 based on performance
Automatic rebalancing: Stake flows to top-performing validators
Five scoring factors: Reliability, Security, Economics, Governance, Longevity
On-chain oracle: Transparent, verifiable validator data
Benefits for users: • No manual validator research or monitoring • Continuous optimization for best returns • Reduced risk from underperforming validators • Full transparency via on-chain data
Launch: HIP-3 Exchange-as-a-Service
What is Launch? The platform enabling permissionless deployment of perpetual futures exchanges through HIP-3, without the 500k HYPE capital barrier. Teams can crowdfund the required stake while focusing on market curation and community building.
How It Works
1. Crowdfund the Stake
Contributors pool HYPE into exchange-specific staking contracts
Receive exLSTs (exchange-specific liquid staking tokens)
Each exchange has its own isolated token (e.g., exA-HYPE for Exchange A)
2. Deploy Your Exchange
Kinetiq handles validator setup, smart contracts, and HyperCore integration
Deployers focus on market selection, branding, and growth
3. Risk Isolation
Separate pools for each exchange deployment
Slashing events only affect the specific exchange pool
Contributors' risk limited to exchanges they explicitly back
The "Shopify × Kickstarter" Model
Infrastructure (Shopify): Complete tech stack without building from scratch
Capital (Kickstarter): Community crowdfunding for the 500k HYPE requirement
Focus: Deployers concentrate on markets, traders, and community
Benefits by Role
For Deployers
Avoid ~$25M capital lockup (at a price of $50 per hype)
Focus on market curation and community building
For HYPE Contributors
Back specific exchanges aligned with your interests
Earn yield from successful deployments
Diversify across multiple exLSTs with isolated risk
For Traders
Access specialized markets not available on main exchange
Benefit from competitive fees and innovative products
Support community-driven market creation
Important Considerations for LST Providers
Slashing Risk
Deployer stakes subject to validator slashing for malicious behavior
Carefully diligence deployers before contributing
Consider requiring self-bonding from deployers (skin in the game)
Risk Factors
Smart contract risk despite audits
Deployer competence and key management
Market quality and oracle reliability
Potential total loss if deployer severely mismanages
Security & Audits
Completed audits: Spearbit, Zenith, Pashov Audit Group, Code4rena
Institutional product (iHYPE): IMC Trading, Flowdesk partnerships - Source
kPoints program: 800,000 weekly distribution for ecosystem participation (Launch date: July 15, 2025)
The Bottom Line
Kinetiq creates two distinct value propositions:
kHYPE: Liquid staking for individual HYPE holders seeking DeFi flexibility Launch: Infrastructure for teams to deploy HIP-3 exchanges without massive capital requirements
Both products leverage Kinetiq's LST technology while serving different market needs - individual stakers vs. exchange deployers - with appropriate risk isolation between products.
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