❔FAQ

What is Kinetiq?

• The Kinetiq protocol builds and deploys software purpose-built for the Hyperliquid network. The protocol enables users to mint kHYPE — a reward-accruing liquid staking token for HYPE, the native token of the Hyperliquid blockchain.

What is kHYPE?

• kHYPE is a reward-accrual liquid staking token (LST) for HYPE, which receives rewards linked to validator activity writing data to the Hyperliquid blockchain.

How is this different to staking HYPE directly to validators?

• When you stake HYPE through Kinetiq, you in return receive a receipt token (kHYPE) representing the staked token plus the rights to any staking rewards. This token is liquid (tradeable), can be utilized in DeFi, or simply held in your wallet while you continue to earn staking rewards.

How does kHYPE accrue rewards?

• kHYPE continuously accrues rewards over time while maintaining a constant quantity of tokens in your wallet. As rewards accumulate over time, the value of the kHYPE token grows, and the kHYPE:HYPE exchange rate increases as well. This is why the kHYPE:HYPE exchange rate is not 1:1- the longer you hold kHYPE, the more rewards you will accrue, and the greater the difference in the exchange rate.

How is this different from other LST models?

• The reward-accrual LST design employed by Kinetiq is in contrast to a rebasing LST design, where the token adjusts in supply to maintain a stable value. The exchange rate remains the same but the token balance constantly rises in your wallet as staking rewards are accrued over time. The frictionless accrual of yield makes the reward-accrual model superior to rebasing.

How do I get my staking rewards?

• Since kHYPE is a reward-accruing LST, it grows in value against HYPE. Staking rewards generated by staking with Kinetiq are automatically added to the price of kHYPE when staking rewards are distributed daily. This mechanism guarantees that when you redeem kHYPE, you’ll receive more HYPE than your original deposit.

What are the risks in using Kinetiq?

• Kinetiq has taken measures to mitigate typical DeFi risks — including smart contract vulnerabilities, liquidity slippage, and validator-related concerns. Hyperliquid’s architecture currently removes slashing risk entirely, although this is subject to change in the future. Read further to understand the potential risks when utilizing Kinetiq.

Smart contract risk

• As with any smart contract, it is entirely possible that Kinetiq smart contracts may contain a bug or vulnerability. To mitigate this risk, all Kinetiq core contracts have been audited several times over, by firms like Spearbit, Zenith, Pashov Audit Group, as well as a public audit competition through Code4rena. Kinetiq will continue to audit its smart contracts as future iterations of the protocol are rolled out to ensure the highest standards of security, and take further steps to mitigate smart contract risk. Read our audit reports here: Contracts and Audits

kHYPE price risk

• Users may face a situation where the exchange price of kHYPE falls below its inherent value due to withdrawal restrictions on Kinetiq, preventing arbitrage and risk-free market-making. Kinetiq is committed to minimizing these risks and, where possible, eliminating them entirely. However, they may still persist, and it is our responsibility to ensure they are clearly communicated.

Slashing risk

• The Hyperliquid network currently does not enforce slashing, however it is entirely possible that it is enforced in the future and therefore must be communicated as a future risk in the event that Kinetiq allocates stake to validators that due suffer a slashing event by not abiding by the rules of the network. For more information as to how StakeHub mitigates this risk, visit here: StakeHub

How can I unstake my kHYPE?

• You can unstake your kHYPE using one of two methods:

  • Direct unstaking, which involves a ~7 day withdrawal period and a 0.10% withdrawal fee (in the form of kHYPE)

  • Swapping instantly on a supported kHYPE market

Note: There is a 24 hour withdrawal delay when you first stake, meaning if you want to unstake immediately after staking, it will not be possible until after the withdrawal delay of 24 hours passes. The alternative is to swap your kHYPE via the various liquid markets live on both HyperCore or HyperEVM.