🌊Liquid Staking Primer

The Importance of Staking, and why to maximize your yield and efficiency by liquid staking your HYPE with Kinetiq

The Importance of Staking

Staking is the heartbeat of Proof of Stake (PoS) ecosystems like Hyperliquid. Here’s why:

1. Security Staking enhances the security of the network by requiring participants (validators) to lock up a certain amount of tokens. This stake serves as a financial incentive for validators to act honestly, as malicious behavior could lead to the loss of their staked funds.

2. Decentralization: By allowing more participants to validate transactions, staking promotes decentralization. Unlike Proof of Work (PoW) systems that rely on expensive, energy-intensive hardware, PoS enables individuals with varying amounts of tokens to participate, widening access and reducing central control.

3. Aligned Incentives: Staking aligns the interests of validators with the success of the network. As stakeholders, they are incentivized to maintain the network’s health, stability, and relevance, as their rewards and potentially the value of their holdings depend on the network's success.

Why staking with Kinetiq for kHYPE is superior to Staking HYPE natively

How kHYPE Works

The Limitations of Traditional Staking

While staking helps secure the network and earn rewards, it often comes with trade-offs:

• Locked capital

• Manual validator selection

• Lack of liquidity

• Opportunity cost in DeFi

Liquid staking solves these problems by letting you earn staking rewards without giving up liquidity.

With Kinetiq, you can stake HYPE and receive kHYPE — a token that represents your staked position while staying liquid and usable across Hyperliquid DeFi.

kHYPE > Native Staking — Here’s why:

• Autonomous Validator Delegation: Kinetiq automatically distributes your stake across top-performing validators, selected by StakeHub, our public, transparent scoring system.

• No Manual Oversight Required: No need to track performance or re-delegate. Stake once. Earn yield passively.

• Instant Liquidity: Use kHYPE across the DeFi stack while continuing to earn staking rewards.

Hyperliquid's Network Benefits

With Kinetiq, kHYPE stakers can earn high yields while actively supporting decentralization—without compromise. Through StakeHub, Kinetiq provides a continuous incentive for validators to stay online and performant at the highest possible level, aligning with the strict criteria set by StakeHub to receive stake delegation.

kHYPE Liquidity and DeFi Integrations

kHYPE unlocks powerful utility through strategic integrations with core DeFi platforms.

From AMMs to money markets, Kinetiq ensures full composability across the ecosystem. As a result, participants can put their kHYPE to work in a variety of ways, including:

• Collateralization: Suitable for lending, borrowing, and margin trading on platforms built atop Hyperliquid, such as:

  • CDP Stablecoins (such as Felix's feUSD, or HypurrFi's USDXL)

  • Money Markets (such as Felix, or Hyperlend)

• Liquidity Pools: Pairing with assets like HYPE, USDC, etc across orderbooks and AMM’s, facilitating seamless trading and liquidity provision on platforms like:

  • Various DEX's that offer a multitude of liquidity provisioning and trading options such as:

    • Stableswap AMM's (such as Curve)

    • Constant Product or Concentrated Liquidity DEX's (such as kHYPE AMM by Valantis, or Laminar)

For further ideas on how to best utilize your kHYPE, refer to our Ecosystem page here: [insert link to Ecosystem page on Kinetiq site]