# Kinetiq
Kinetiq transforms locked HYPE into liquid, yield-bearing tokens through two core products: **kHYPE** (liquid staking) and **Launch** (HIP-3 exchange deployment).
[Website](https://kinetiq.xyz/) | [Twitter](https://x.com/kinetiq_xyz) | [Discord](https://discord.com/invite/kinetiq) | [Telegram](https://t.me/kinetiq_announcements) | [Documentation](https://docs.kinetiq.xyz/)
### 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](https://hyperliquid-co.gitbook.io/wiki/architecture/hypercore/dex/clearinghouse/fees#fee-tiers) and [Staking Referral Program](https://hyperliquid-co.gitbook.io/wiki/architecture/hypercore/dex/clearinghouse/fees#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.
| Tier Level | HYPE Staked | Value ($) | Break-even APR 5k$/month | Break-even APR 20k$/month | Break-even APR 100k$/month |
| ---------- | ----------- | ---------- | ------------------------ | ------------------------- | -------------------------- |
| 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](https://x.com/kinetiq_xyz/status/1935766396496945561)
* **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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