Liquid Staking on Hyperliquid
Liquid staking protocols on Hyperliquid let users stake HYPE and receive liquid tokens that can be used as collateral across HyperEVM DeFi — combining staking yield with full capital efficiency. This unlocks the classic LSTfi loop pioneered on Ethereum but native to HL.
All Liquid Staking Projects
Kinetiq
Largest liquid staking protocol on Hyperliquid — kHYPE
StakedHYPE
stHYPE liquid staking — stake HYPE, stay liquid
Understanding Liquid Staking on Hyperliquid
Liquid staking on Hyperliquid solves a fundamental tradeoff: when you stake HYPE natively, your tokens are locked and cannot participate in DeFi. Liquid staking protocols accept your HYPE, stake it with validators on your behalf, and give you a receipt token (kHYPE, stHYPE, or beHYPE) that represents your staked position. These LSTs accrue staking rewards automatically and can be freely traded, used as collateral, or deployed in DeFi.
The Hyperliquid LST ecosystem has grown rapidly, with over $1.7B in total value locked across liquid staking protocols. Each protocol takes a different approach: Kinetiq (kHYPE) focuses on deep DeFi integrations and validator diversification, StakedHYPE (stHYPE) — built by Thunderhead and acquired by Valantis — emphasizes decentralized validator selection, and HyperBeat (beHYPE) operates as a yield aggregation protocol that optimizes staking returns.
The real power of liquid staking emerges through composability. Users can deposit LSTs into lending protocols like HyperLend to borrow against them, provide liquidity in DEX pools (e.g., kHYPE/HYPE on HyperSwap), or use them in yield vaults — all while continuing to earn the base staking APY of approximately 2.25%.
Key Projects
Kinetiq is the market-leading LST protocol with kHYPE, offering the deepest DeFi integrations across HyperEVM lending and DEX protocols. StakedHYPE (stHYPE), originally built by Thunderhead and acquired by Valantis, provides a decentralized approach to validator selection. HyperBeat is a yield aggregation protocol with beHYPE, optimizing staking returns through automated strategies.
Why Liquid Staking Matters on Hyperliquid
Liquid staking is arguably the most important DeFi primitive on Hyperliquid. It secures the network through staking while keeping capital liquid for DeFi — without it, users face a binary choice between staking rewards and DeFi yields. With $1.7B+ in LSTs, liquid staking has become the largest DeFi category on Hyperliquid and the foundation that lending, DEX, and yield protocols build upon.
Compare Liquid Staking Projects
Related Categories
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9 min read →Frequently Asked Questions
What are the best Liquid Staking projects on Hyperliquid?
The top liquid staking projects on Hyperliquid are Kinetiq (kHYPE) — the largest LST by TVL with deep DeFi integrations, StakedHYPE (stHYPE) by Valantis with decentralized validator selection, and HyperBeat (beHYPE) which focuses on yield aggregation and optimized staking returns. Together they hold over $1.7B in staked HYPE.
How does Liquid Staking work on Hyperliquid?
Liquid staking on Hyperliquid works by depositing HYPE into a protocol (like Kinetiq), which stakes it with validators and gives you a liquid receipt token (kHYPE). This token automatically accrues staking rewards (~2.25% APY) and can be used across HyperEVM DeFi — as collateral on HyperLend, in DEX liquidity pools, or in yield vaults. When you want to unstake, you redeem the LST for your HYPE plus accumulated rewards.
Is Liquid Staking safe on Hyperliquid?
Liquid staking on Hyperliquid is generally considered lower risk than other DeFi activities because the underlying asset (HYPE) is staked with network validators. Key risks include smart contract bugs, depeg events (where the LST trades below its backing value), and slashing risk if a validator misbehaves. Stick to verified LST protocols with audited contracts and deep secondary market liquidity for the safest experience.
Compare Liquid Staking Projects
See how Liquid Staking projects on Hyperliquid stack up against each other side-by-side.
Compare Liquid Staking projects side-by-side