Question 1

What is Kinetiq?

Accepted Answer

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. Learn more about Kinetiq

Question 2

What is kHYPE?

Accepted Answer

kHYPE is a reward-accruing liquid staking token (LST) for HYPE, which receives rewards linked to validator activity writing data to the Hyperliquid blockchain. Unlike staking HYPE directly to validators, when you stake kHYPE through Kinetiq, you in return receive 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.

Question 3

How does kHYPE accrue rewards?

Accepted Answer

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. The reward-accruing 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. Learn more about the reward-accruing LST architecture.

Question 4

How do I get my staking rewards?

Accepted Answer

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. Learn more about how reward-accruing LSTs work.

Question 5

What are the potential risks for kHYPE?

Accepted Answer

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, and 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. 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. Learn more about how Kinetiq mitigate this risk.

Question 6

What are the potential risks for vkHYPE?

Accepted Answer

vkHYPE inherits the same risks as kHYPE, but also includes the vault does liquidity provision which can result in impermanent loss and the vault may use leverage at times depending on the strategy, meaning it could be susceptible to liquidation risk.

Question 7

How can I unstake kHYPE?

Accepted Answer

You can unstake kHYPE using one of two methods: Direct unstaking, which involves a ~8.5 day unstake period and a 0.10% unstake fee (in the form of kHYPE) Swapping instantly on a supported kHYPE market

Protocol	Rewards	Category
Curve		DEX
Hyperswap		DEX
Project X		DEX
Ramses		DEX
Ultrasolid		DEX
Felix		Lending
Hyperlend		Lending
HypurrFi		Lending
Sentiment		Lending
Harmonix		Yield
Hybra		Yield
Pendle		Yield
Treehouse		Yield

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kHYPE

Kinetiq Earn

vkHYPE

kHYPE ecosystem

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