Kinetiq
Kinetiq is a liquid staking protocol built natively on the Hyperliquid Layer 1 blockchain. Its primary function is to allow users to stake Hyperliquid's native token, HYPE, to earn rewards while receiving a liquid staking token (LST) called Kinetiq Staked HYPE (kHYPE), which can be used in other decentralized finance (DeFi) applications. [1]
Overview
Kinetiq was developed by Kinetiq Research to address the issue of capital inefficiency in traditional staking, where staked assets are locked and cannot be used elsewhere. By providing the kHYPE token as a liquid receipt for staked HYPE, the protocol enables users to simultaneously earn staking rewards and participate in other yield-generating activities within the Hyperliquid ecosystem. The protocol is designed to enhance the security and decentralization of the Hyperliquid network by encouraging more HYPE to be staked. [1] [2]
The core of the protocol is an automated validator management system called StakeHub, which algorithmically selects, monitors, and delegates staked assets to a diversified set of high-performing validators. This system aims to optimize yield for users while mitigating risks associated with individual validator performance. Kinetiq also offers specialized products, including an institutional staking solution named iHYPE and an Exchange-as-a-Service (EaaS) platform called Launch, designed to lower the barrier for creating new perpetual futures exchanges on Hyperliquid. [3] [1]
The project's founder, operating under the pseudonym Omnia.hl, described the protocol's initial offerings as a starting point for broader growth within the Hyperliquid ecosystem. In a statement regarding the launch, Omnia.hl said, "This is really only the beginning... what you've seen so far is merely a warmup." [2]
History
Kinetiq's development was facilitated by Hyperliquid's mainnet upgrade that enabled "CoreWriter Contracts," which allow for more complex smart contract interactions on the network. [4] The protocol's mainnet launch was scheduled for July 15, 2025. In the week leading up to the launch, the market showed significant anticipation, with over 1 million HYPE tokens, valued at approximately $40 million at the time, being queued for unstaking from existing validators. A large portion of this activity, totaling 847,000 HYPE ($33.5 million), was traced to three large wallets, indicating a strategic move by major token holders to redeploy their assets into Kinetiq upon its debut. [2]
Shortly after its launch in mid-July 2025, Kinetiq initiated a points program to incentivize user deposits and participation. This campaign was a significant driver of the protocol's early growth. The Total Value Locked (TVL) in the protocol grew from approximately $458 million in mid-July to over $2.1 billion by September 11, 2025. This increase was attributed to both new HYPE deposits, which rose from under 10 million to nearly 40 million tokens, and a 20% appreciation in the price of HYPE during the same period. The points program was scheduled to conclude with a final distribution on October 16, 2025. [5] [6]
Technology
Kinetiq is built as a native protocol on the Hyperliquid Layer 1, allowing for deep integration with the blockchain's core infrastructure for efficient operations and security. [1]
Core Mechanism
The protocol's user flow is designed for simplicity and automation.
- Staking: A user deposits HYPE tokens into the Kinetiq smart contract.
- Minting: The protocol mints and sends the user an equivalent value of kHYPE tokens, which represent their claim on the staked HYPE and accruing rewards.
- Delegation: The deposited HYPE is automatically delegated to a set of validators selected by the StakeHub system.
- Reward Accrual: Staking rewards generated by the validators are collected by the protocol and reinvested, causing the value of kHYPE to appreciate relative to HYPE over time.
- Unstaking: To redeem their HYPE, a user submits their kHYPE to the protocol. Following a mandatory security delay period inherent to the Hyperliquid network, the user can claim their original HYPE plus the accumulated rewards. [1]
kHYPE Token
Kinetiq Staked HYPE (kHYPE) is the liquid staking token that represents a user's staked position. It is a yield-bearing asset designed for composability, meaning it can be used as collateral, in liquidity pools, or for trading across the Hyperliquid DeFi ecosystem. The token follows a non-rebasing model; instead of the quantity of kHYPE in a user's wallet increasing, the exchange rate between kHYPE and HYPE increases as staking rewards are added to the pool. A related token, vkHYPE, has also been introduced and became tradable on the Project X platform on October 7, 2025. [1] [6]
StakeHub
StakeHub is Kinetiq's proprietary autonomous validator management system. It is responsible for managing all HYPE staked within the protocol and is designed to optimize returns while minimizing risk. Its key functions include:
- Algorithmic Selection: It uses a scoring system based on performance metrics to evaluate and select the most effective validators on the Hyperliquid network.
- Continuous Monitoring: The system actively tracks validator uptime and performance to ensure staked assets are productive.
- Automatic Rebalancing: StakeHub dynamically adjusts the delegation of HYPE among its selected validators to adapt to changes in performance and maximize overall yield.
- Risk Diversification: By spreading the protocol's stake across a broad set of validators, it reduces the risk associated with any single validator experiencing downtime or performance issues. [1]
Products and Services
In addition to its core liquid staking function, Kinetiq offers several specialized services for different user segments within the Hyperliquid ecosystem.
iHYPE for Institutions
iHYPE is a HYPE staking product designed specifically for institutional clients. It provides features and integrations tailored for institutional-grade platforms and workflows. Kinetiq established partnerships with firms such as FlowDesk and IMC Trading for this solution. On August 14, 2025, Hyperion DeFi, Inc. became the first institutional depositor for the iHYPE product. [3] [2]
Launch (Exchange-as-a-Service)
On July 31, 2025, Kinetiq announced "Launch," an Exchange-as-a-Service (EaaS) platform. This service enables teams to deploy their own perpetual futures exchanges on Hyperliquid without meeting the substantial capital requirement of staking over 1,000,000 HYPE (valued at approximately $42 million at the time of announcement) as mandated by Hyperliquid Improvement Proposal 3 (HIP-3). The platform facilitates this through a crowdfunding mechanism where HYPE holders can contribute to isolated staking pools for specific exchange projects they wish to support, earning a share of the trading fees from that exchange. Kinetiq provides the technical backend, including validator coordination, governance tools, and automated fee distribution. [3]
Justin Greenberg, Co-Founder and CTO of Kinetiq, described the vision for the platform: "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.” [3]
Security
Kinetiq's security framework includes multiple layers to protect user assets. The protocol's smart contracts have undergone independent security audits from four firms: Spearbit, Pashov Audit Group, Zenith, and code4rena. To further incentivize security research, Kinetiq maintains an active public bug bounty program hosted on the Cantina platform. The protocol also incorporates several on-chain safeguards, such as an emergency response system, role-based access controls for critical functions, multi-signature controls, and a secure framework for upgrades. [7] [1]
Team
Kinetiq was founded by a pseudonymous individual known as "Omnia.hl" or "0xOmnia". Justin Greenberg serves as the Co-Founder and Chief Technology Officer. The protocol is developed and maintained by the entity Kinetiq Research, which is part of the HypurrCo ecosystem, an organization that supports projects building on Hyperliquid. The project completed an angel funding round prior to its public launch. [2] [3] [8]
Partnerships
Kinetiq has established collaborations across the Hyperliquid ecosystem and with institutional entities. It is a member of the Secure Staking Alliance and has integrated with DeFi protocols including Veda, Felix, Valantis, Curve, Hyperdrive, pvp.trade, Pendle, Hyperlend, and PRJX. [7]
On June 25, 2025, Kinetiq announced a partnership with Eyenovia, Inc., the first U.S. publicly listed company to hold HYPE in its treasury. The collaboration resulted in the launch of a co-branded mainnet validator named "Kinetiq x Hyperion," supported by Eyenovia's HYPE holdings. The validator's infrastructure is managed by institutional staking provider Pier Two, which utilizes SOC 2 certified hardware. [9]