Kinetiq Staked HYPE (kHYPE)
Kinetiq Staked HYPE (kHYPE) is a liquid staking token issued by the Kinetiq protocol that operates on the Hyperliquid blockchain. The token represents a user's staked HYPE, the native asset of Hyperliquid, allowing holders to earn staking rewards while maintaining liquidity to participate in other decentralized finance (DeFi) activities.
Overview
Kinetiq is a liquid staking protocol built natively on Hyperliquid's Layer 1 blockchain. Its primary product, kHYPE, is designed to simplify the staking process for HYPE token holders. Instead of locking up assets and managing validator delegations directly, users can stake their HYPE through Kinetiq and receive kHYPE in return. This token automatically accrues staking rewards, reflected in its increasing value relative to HYPE over time. The protocol aims to enhance the overall security and decentralization of the Hyperliquid network by distributing staked assets across a diverse set of high-performing validators. [1]
The protocol utilizes an autonomous system called "StakeHub" to manage the delegation of staked HYPE. This system algorithmically scores and selects the best-performing validators on the Hyperliquid network, continuously monitoring and rebalancing the delegations to optimize yield and mitigate risk. By providing a liquid and composable asset, kHYPE serves as a core building block for the DeFi ecosystem on Hyperliquid, enabling its use as collateral in lending protocols, for providing liquidity in automated market makers (AMMs), and in other yield-generating strategies. Kinetiq also offers a distinct liquid staking solution, iHYPE, tailored for institutional clients. [1] [2]
History
In June 2025, Kinetiq, in partnership with Eyenovia, Inc., and institutional staking provider Pier Two, announced the launch of a co-branded mainnet validator named "Kinetiq x Hyperion." This collaboration was intended to build secure infrastructure for institutional-grade liquid staking on Hyperliquid. [3]
The protocol's mainnet launch was scheduled for July 15, 2025. In the week leading up to the launch, on-chain data revealed that over 1 million HYPE tokens, valued at approximately $40 million at the time, were queued for unstaking from existing validators. This large-scale capital movement was widely interpreted as anticipation from large holders, or "whales," preparing to redeploy their assets into the Kinetiq protocol upon its debut. [4] [2]
Following its launch, Kinetiq initiated a points program to incentivize early adoption. This campaign contributed to significant growth in the protocol's Total Value Locked (TVL). Between mid-July and September 11, 2025, Kinetiq's TVL increased from approximately $458 million to over $2.1 billion. This growth was attributed to both new HYPE deposits from users seeking to qualify for a potential airdrop and a 20% appreciation in the price of the HYPE token during that period. The final distribution of the "kPoints" incentive program was scheduled for October 16, 2025. [5] [6]
On July 31, 2025, Kinetiq announced "Launch," an Exchange-as-a-Service (EaaS) platform designed to allow teams to deploy their own perpetual futures exchanges on Hyperliquid by crowdfunding the required HYPE stake. [7]
Technology and Mechanism
Staking and Unstaking Process
To obtain kHYPE, users must first ensure their HYPE tokens are on the HyperEVM, Hyperliquid's smart contract platform. The process involves connecting a wallet to the Kinetiq dApp, specifying the amount of HYPE to stake, and executing the transaction. Upon confirmation, the user receives an equivalent amount of kHYPE. [8]
The unstaking process, which converts kHYPE back to HYPE, involves a mandatory delay period of approximately eight to nine days and a 0.10% fee on the amount being unstaked. The process consists of three steps:
- Queue Unstake: The user initiates a withdrawal request on the Kinetiq dApp and receives a unique withdrawal ID. The kHYPE tokens remain in the user's wallet during the delay.
- Wait Period: The user must wait for the delay period, which includes a 1-day delegation lockup and a 7-day unstaking queue, to conclude.
- Confirm Withdrawal: After the period ends, the user returns to the dApp to finalize the withdrawal, which burns the kHYPE and returns the corresponding HYPE to their wallet.
As an alternative to the unstaking delay, users can achieve instant liquidity by trading their kHYPE tokens on supported decentralized exchanges (DEXs), though this may incur price slippage. [8]
StakeHub Validator Management
At the core of the protocol is StakeHub, an autonomous system responsible for managing the staked HYPE assets. StakeHub is designed to optimize yield and enhance network security through several functions:
- Algorithmic Selection: It evaluates and selects Hyperliquid validators based on performance metrics.
- Continuous Monitoring: The system actively tracks validator performance to ensure optimal returns.
- Automatic Rebalancing: It dynamically adjusts HYPE delegations among validators without requiring user intervention.
- Risk Diversification: By spreading stakes across multiple validators, it mitigates risks associated with the performance or downtime of any single validator. [1]
Native Integration and Cross-Chain Swaps
Kinetiq is deeply integrated with Hyperliquid's Layer 1 infrastructure, utilizing features like CoreWriter Contracts to communicate directly with validators and efficiently manage staking operations. This native integration allows for synchronized and secure interactions with the blockchain's core state. [2]
The protocol also facilitates cross-chain functionality, allowing users to acquire kHYPE directly on HyperEVM by swapping ETH or USDC from the Ethereum or Base blockchains. This feature is powered by a partnership with Enso. [8]
Tokenomics
kHYPE Token
- Ticker: kHYPE (sometimes listed as KHYPE)
- Blockchain: HyperEVM
- Contract Address:
0xfd739d4e423301ce9385c1fb8850539d657c296d - Maximum Supply: Infinite
The market capitalization to fully diluted valuation (FDV) ratio was 1.0, indicating that the total supply was in circulation at that time. [9]
Ecosystem and Use Cases
DeFi Applications
kHYPE is designed to be a composable asset within the Hyperliquid DeFi ecosystem. It can be used as collateral for borrowing, supplied to liquidity pools on DEXs, or integrated into other structured financial products. The token is traded on several DEXs, with Project X, UltraSolid V3, and Hybra Finance V3 being among the most prominent venues. The most active trading pair has been USDT0/kHYPE on Project X. [9]
"Launch" EaaS Platform
Kinetiq's "Launch" platform functions as an Exchange-as-a-Service (EaaS) solution. It addresses a significant capital barrier for teams wishing to deploy custom perpetual futures exchanges on Hyperliquid, which requires a minimum stake of 1,000,000 HYPE per Hyperliquid Improvement Proposal 3 (HIP-3). "Launch" enables teams to crowdfund this stake from the community. Contributors receive a unique, exchange-specific Liquid Staking Token (exLST) that represents their share of the staked assets and grants them a portion of the trading fees and governance rights over that specific exchange. Each exchange deployed via "Launch" operates in an isolated staking pool, separating its risk from other exchanges on the platform. [7]
"Launch unlocks a new layer of financial expression on Hyperliquid. Teams can now spin up exchanges as easily as stores on Shopify—while backers support visions they believe in, like on Kickstarter." — Justin Greenberg, Co-Founder and CTO of Kinetiq [7]
Related Tokens
- iHYPE: A liquid staking solution created specifically for institutional partners, with integrations for firms such as FlowDesk and IMC Trading. [4]
- vkHYPE: A token observed to be trading on the Project X platform. The "v" prefix suggests it may be a vested or vote-escrowed version of a Kinetiq-related token, potentially used for governance or enhanced yield. [6]
Team and Organization
Kinetiq was developed by Kinetiq Research. The protocol was founded by a figure known by the alias 0xOmnia or Omnia.hl. Justin Greenberg serves as the Co-Founder and Chief Technology Officer. Kinetiq is also a member of the HypurrCo ecosystem, a collective that supports projects building on Hyperliquid. [10] [4] [7]
"This is really only the beginning... what you've seen so far is merely a warmup.” — Omnia.hl, Founder of Kinetiq [4]
Security
The Kinetiq protocol has implemented a multi-layered security strategy. It has undergone security audits from four independent firms: Spearbit, Pashov Audit Group, Zenith, and code4rena. The protocol is a member of the Secure Staking Alliance and maintains a public bug bounty program hosted on the Cantina platform to incentivize security research. The infrastructure supporting its institutional offerings, such as the "Kinetiq x Hyperion" validator, is provided by Pier Two, which holds SOC 2 Type I and Type II certifications. [11] [3]
Controversies
De-pegging Event
Between September 24 and September 27, 2025, the kHYPE token experienced a notable de-pegging event against wrapped HYPE (WHYPE). During this period, its value fell to a low of 0.8802 before recovering its peg. The market attention during this time was also linked to a simultaneous NFT airdrop conducted by Hyperliquid. [9]