HyperSwap vs Kinetiq

HyperSwap

HyperSwap is the first and most established native automated market maker (AMM) built on HyperEVM, Hyperliquid's EVM-compatible smart contract execution layer. Launched in early 2025 when HyperEVM went live, HyperSwap functions as the foundational liquidity hub of the HyperEVM ecosystem, providing the AMM infrastructure that powers swaps, LP incentives, and DeFi composability for the entire chain. Its token is traded under the ticker SWAP, with a token generation event (TGE) structured around a points accumulation campaign. HOW IT WORKS HyperSwap is architecturally a fork of Uniswap V2 and V3, adapted and deployed natively on HyperEVM. It runs two distinct pool types: a V2 implementation using the constant product (x*y=k) formula, where liquidity is spread uniformly across all price ranges, making it simple for passive LPs; and a V3 implementation that supports concentrated liquidity, allowing LPs to specify price ranges where their capital is actively deployed to earn a higher share of trading fees. Trades on HyperSwap execute directly against these liquidity pools via EVM smart contracts, with pricing determined algorithmically by pool ratios rather than an order book. Every swap incurs a fee that accrues to liquidity providers in proportion to their pool share. HyperSwap also runs an incentive layer via xHSPX (vote-escrowed SWAP), where users who lock SWAP tokens can direct liquidity mining emissions to specific pools, following a model pioneered by Curve Finance's veTokenomics. The protocol integrates with Thunderhead's liquid staking module, enabling users to stake HYPE directly through HyperSwap's interface in exchange for stHYPE, with HyperSwap-native incentives (HSPX) offered on top of staking yields. This creates a composable DeFi stack where users can simultaneously earn staking rewards, LP fees, and protocol emissions within one interface. KEY FEATURES - Dual AMM Architecture: V2 passive pools and V3 concentrated liquidity pools serve different LP risk profiles and strategies - Native HyperEVM Deployment: Built from the ground up on HyperEVM, providing chain-native speed and EVM compatibility without bridging or compatibility layers - veToken Incentive System: SWAP holders can lock tokens for xHSPX to direct liquidity emissions, aligning long-term liquidity with protocol governance - stHYPE Staking Integration: Partnership with Thunderhead allows users to stake HYPE and receive stHYPE through the HyperSwap interface, with additional HSPX point incentives - Points-Based Airdrop: A structured points program rewards swap volume and LP activity ahead of the SWAP token TGE TEAM AND BACKING HyperSwap was co-founded by CryptoPoulpe (known in French crypto communities as a prominent trader and KOL who was among the earliest public advocates for Hyperliquid in France) and Ryzed, an operator who left a traditional career to focus full-time on Hyperliquid development. The two met through crypto trading circles and were building HyperSwap while staying together in Bali during the HyperEVM beta phase, where they identified the need for a native AMM as the chain's first critical infrastructure gap. The broader HyperSwap team extends beyond the two founders. The project has reached a Strategic / Series A funding stage according to ecosystem trackers, implying institutional backing, though specific investors and round sizes have not been publicly confirmed. The team operates on Hyperliquid exclusively and has signaled no plans to deploy on other chains. TRACTION AND METRICS HyperSwap launched at the inception of HyperEVM in mid-February 2025 and quickly became the dominant on-chain AMM by liquidity. DefiLlama tracks HyperSwap's TVL, fees, and volume, confirming its status as one of the top protocols by TVL on HyperEVM. The protocol has active pools for major trading pairs including HYPE/USDC, HYPE/WETH, and HyperEVM token pairs launched through the ecosystem. HyperSwap's LP pools are consistently cited as primary liquidity sources by HyperEVM DEX aggregators including Gliquid, LiquidSwap, HyperBloom, and Laminar, confirming its position as the deepest native liquidity source on the chain. The SWAP token has an active secondary market, with the SWAP/WHYPE pair trading on HyperEVM. The points program has attracted significant user participation ahead of the TGE. HyperSwap is cited as one of the highest-traffic HyperEVM dApps, processing a substantial share of all HyperEVM swap volume. COMPETITIVE POSITION HyperSwap's primary competitors on HyperEVM are KittenSwap, Laminar, Hybra, ProjectX, and Valantis. KittenSwap is its most direct AMM rival, while Laminar competes as a liquidity engine with direct HyperCore order book access. HyperSwap's advantage is first-mover status and the deepest aggregate liquidity in the ecosystem, which creates a flywheel: more liquidity attracts more volume, generating more fees, which attracts more LPs. Against the broader DeFi AMM landscape, HyperSwap's Uniswap V2/V3 fork architecture is technically well-understood and battle-tested, reducing smart contract risk, but it does not offer architectural differentiation beyond the Hyperliquid chain context. The veToken model borrowed from Curve is proven but introduces complexity for retail users and creates governance competition dynamics. Its moat is therefore primarily chain-native advantage and liquidity network effects rather than protocol innovation. HYPERLIQUID INTEGRATION HyperSwap is a HyperEVM-native protocol that interfaces with Hyperliquid's chain at the execution layer. Users must transfer assets from HyperCore's spot or perp accounts to HyperEVM before interacting with HyperSwap. The protocol benefits from HyperEVM's sub-second block finality and low transaction costs, which make AMM swaps economically viable at smaller sizes than on chains like Ethereum mainnet. HyperSwap does not directly use HyperCore's order book or HIP-3 infrastructure, but its role as the primary HyperEVM liquidity layer means it is deeply integrated with the Hyperliquid ecosystem's overall composability. Every new token, protocol, or DeFi primitive launched on HyperEVM typically bootstraps initial liquidity through HyperSwap pools, cementing its position as DeFi infrastructure rather than a standalone application. RISKS AND CONSIDERATIONS HyperSwap's core risk is architectural commoditization — Uniswap V2/V3 forks are abundant across DeFi, and if a technically superior AMM (such as Gliquid's V4-based pools) attracts deeper liquidity, HyperSwap could lose its dominant position. The veToken system introduces centralization of governance power among large SWAP holders, which can direct emissions in ways that benefit insiders at the expense of protocol efficiency. Smart contract risk, while mitigated by using Uniswap's proven codebase, is present for HyperEVM-specific modifications and the Thunderhead integration module. The TGE timeline has not been officially disclosed, creating uncertainty for LP and airdrop participants who have allocated capital based on token reward expectations. If the TGE is delayed or the token economics are unfavorable, participation incentives may collapse rapidly. Finally, as a HyperEVM-only protocol, HyperSwap's success is entirely correlated with Hyperliquid ecosystem growth — a slowdown in HyperEVM adoption directly impacts the protocol's core metrics.

Kinetiq

Kinetiq is the largest liquid staking protocol on Hyperliquid's HyperEVM, enabling HYPE token holders to stake their assets while retaining DeFi composability through the kHYPE liquid staking token. Founded in late 2024 and launched on mainnet in mid-2025, Kinetiq has grown to become a foundational piece of Hyperliquid's staking infrastructure — peaking at approximately $2.6 billion in TVL before settling around $1 billion by the time of its governance token generation event in November 2025. Beyond staking, Kinetiq has expanded into institutional liquid staking (iHYPE) and infrastructure for HIP-3 exchange deployment (Launch), positioning itself as an ecosystem-wide capital coordination platform. WHAT IT IS Kinetiq allows users to deposit HYPE tokens into a non-custodial staking pool and receive kHYPE — a liquid staking token (LST) that automatically accrues staking rewards over time while remaining transferable and DeFi-composable. This solves the fundamental illiquidity problem of Hyperliquid's native staking: HYPE staked directly to validators is locked and cannot be used in DeFi, while kHYPE can be deployed in lending markets, yield vaults, collateral positions, and liquidity pools across the HyperEVM ecosystem. Kinetiq's StakeHub algorithm distributes the underlying HYPE stake across multiple validators based on performance metrics, creating a diversified validator exposure for all kHYPE holders. HOW IT WORKS The core kHYPE mechanism works through a rebasing-style exchange rate: as staking rewards accrue, the kHYPE-to-HYPE redemption rate increases. Users who deposit HYPE receive kHYPE at the current exchange rate; over time, one kHYPE becomes redeemable for more HYPE than was originally deposited. This makes kHYPE a yield-bearing asset by default — holders capture staking APY simply by holding the token, without any additional steps. Kinetiq's StakeHub algorithm is the protocol's differentiated validator distribution mechanism. Rather than staking all user deposits to a single validator (which would concentrate risk and potentially undermine decentralization), StakeHub scores validators across objective metrics including uptime, performance, and fee levels, then allocates deposited HYPE across the highest-scoring validators. This creates a managed, diversified staking portfolio for kHYPE holders and actively promotes network security by distributing stake away from any single validator. The Earn product extends kHYPE's composability: rather than users manually deploying kHYPE across DeFi protocols like Pendle, HyperLend, or PRJX, the Earn vault — managed by risk curators including Seven Seas Capital — automates yield optimization. Users deposit kHYPE and the protocol continuously reallocates across the highest-yielding HyperEVM opportunities, compounding returns without manual management. iHYPE, launched for institutional participants, is a KYB/KYC-compliant institutional staking pool that provides the same underlying yield as kHYPE but with additional controls, privacy features, and operational standards required by regulated entities. Institutional depositors receive a customized branded token representing their staked HYPE position. The first adopter of iHYPE was Hyperion DeFi, a NASDAQ-listed company, marking a meaningful bridge between Hyperliquid's DeFi-native ecosystem and traditional financial institutions. Launch, unveiled in July 2025, is Kinetiq's Exchange-as-a-Service platform that uses Hyperliquid's HIP-3 to enable teams to deploy their own perpetual futures exchanges. HIP-3 normally requires deployers to stake at least 1 million HYPE — a barrier most teams cannot meet independently. Launch removes this by enabling crowdfunding of the required HYPE stake through isolated staking pools tied to each exchange. Backers deposit HYPE, receive exchange-specific liquid staking tokens (exLSTs), and earn a share of trading fees generated by the deployed exchange. Kinetiq captures infrastructure and coordination fees. The first HIP-3 DEX deployed through Kinetiq Launch was Markets (markets.xyz), launched in 2025. KEY FEATURES - kHYPE liquid staking: Non-custodial, yield-bearing LST that automatically accrues Hyperliquid staking rewards. Composable across the HyperEVM DeFi ecosystem — accepted as collateral by Felix, HyperLend, and other protocols. - StakeHub validator distribution: Algorithmic multi-validator allocation based on objective performance metrics. Promotes Hyperliquid network decentralization and optimizes aggregate staking yield. - Earn vaults: Automated yield optimization for kHYPE holders, managed by professional risk curators. Continuously reallocates across HyperEVM opportunities without user intervention. - iHYPE institutional staking: KYC/KYB-compliant staking product for regulated institutions, providing the same yield as kHYPE with enterprise-grade controls. - Launch (HIP-3 EaaS): Infrastructure for teams to crowdfund and deploy their own HIP-3 perpetual futures exchanges on Hyperliquid, lowering the capital barrier from 1M+ HYPE to a crowdfunded pool. TEAM AND BACKING Kinetiq was founded in late 2024 by a team embedded in the Hyperliquid community, though specific founder identities have not been publicly disclosed. The team raised $1.75 million in seed funding in October 2025 from investors within the Hyperliquid ecosystem. In November 2025, Kinetiq launched the KNTQ governance token (ticker: KNTQ) with a fixed supply of 1 billion tokens. The token distribution allocated 25% to an initial airdrop (24% to holders of kPoints earned through early participation, 1% to Hypurr NFT holders), 23.5% to core contributors with a 3-year vesting schedule and 1-year cliff, 10% to the Kinetiq Foundation, 7.5% to seed investors on the same 3-year vesting terms, 30% to protocol growth and rewards, and 4% to liquidity seeding. The first adopter of iHYPE — Hyperion DeFi, a publicly traded company — provides Kinetiq with institutional validation that few Hyperliquid-native protocols have achieved. TRACTION AND METRICS Kinetiq launched on HyperEVM in July 2025 and immediately captured dominant market share in HYPE liquid staking. TVL grew rapidly to a peak of approximately $2.6 billion, making it one of the largest protocols on HyperEVM by any metric. By the time of the KNTQ TGE on November 27, 2025, TVL had settled to approximately $1 billion — still representing the largest liquid staking protocol in the Hyperliquid ecosystem by a significant margin. The KNTQ TGE introduced the protocol's governance layer and created secondary market liquidity for the token. The iHYPE institutional product onboarded its first client, Hyperion DeFi, in 2025. Kinetiq's kHYPE token has been integrated as accepted collateral across multiple HyperEVM DeFi protocols, embedding it as a core DeFi primitive in the ecosystem. The Launch product had its first HIP-3 DEX operational through Markets.xyz by mid-2025. COMPETITIVE POSITION Within the HyperEVM ecosystem, Kinetiq's primary competitor in liquid staking is HyperBeat's beHYPE (staked HYPE in collaboration with ether.fi). The two protocols compete for the same underlying demand — HYPE holders who want staking rewards without illiquidity — but differ in architecture and positioning: kHYPE is a pure LST with composability-first design, while beHYPE is embedded in HyperBeat's broader yield stack. Kinetiq's first-mover advantage, TVL dominance, and institutional iHYPE product give it a structural edge, though beHYPE benefits from HyperBeat's $5.2M seed round backing from prominent investors. The Launch product creates a category of its own — no other HyperEVM protocol currently provides infrastructure for teams to crowdfund HIP-3 exchange deployments. In a broader DeFi context, Kinetiq maps onto Lido's positioning on Ethereum — the dominant LST provider that becomes infrastructure for the entire DeFi stack — though at a much earlier stage with significant room for both growth and disruption. HYPERLIQUID INTEGRATION Kinetiq is architected exclusively for Hyperliquid's HyperEVM and HyperCore staking system. kHYPE represents staked HYPE tokens delegated to Hyperliquid L1 validators — the staking mechanism is native to HyperCore's consensus layer. The StakeHub algorithm interacts directly with Hyperliquid's validator delegation mechanism to distribute stake. The iHYPE product operates institutional staking through a dedicated validator on the Hyperliquid network. Launch leverages HIP-3 — the Hyperliquid Improvement Proposal enabling permissionless perpetual futures market creation — as the core mechanism for the Exchange-as-a-Service infrastructure. KNTQ was listed using Hyperliquid's Native Market infrastructure (using USDH as the quote asset), qualifying for Hyperliquid's Aligned Quote Asset framework that provides reduced trading fees and greater rebates. kHYPE is accepted as collateral across multiple HyperEVM native protocols, embedding it in the DeFi composability stack that HyperEVM is designed to enable. RISKS AND CONSIDERATIONS Liquid staking protocols are fundamentally smart contract risk vectors — a bug in the kHYPE contract or StakeHub allocation logic could result in irreversible loss of user funds. As the dominant LST provider in the Hyperliquid ecosystem, a Kinetiq exploit would have outsized systemic consequences, given kHYPE's integration as collateral across multiple DeFi protocols. Validator slashing risk exists if Hyperliquid implements slashing in future protocol upgrades — currently the network does not slash, but this could change. The $1.75M seed round is modest relative to the TVL managed, creating questions about team capacity and ability to scale operations and security practices. The KNTQ airdrop's 25% allocation creates potential sell pressure post-TGE as early participants exit positions. The iHYPE institutional product creates regulatory surface area — KYC/KYB compliance programs carry compliance costs and legal uncertainty in evolving regulatory environments. The Launch product's success depends on HIP-3 adoption broadly — if permissionless perp market creation does not achieve mainstream builder traction, Launch's fee revenue will be limited. HYPE price risk cascades through the entire protocol: a sharp decline reduces staking rewards in dollar terms, potentially reducing the attractiveness of kHYPE relative to simply holding unstaked HYPE.

Choose HyperSwap if you...

• ✓Want a decentralized exchanges solution on HyperEVM
• ✓Prefer a verified and vetted protocol
• ✓Need features like DEX and AMM
• ✓Need: First and largest native DEX on HyperEVM — ~$57M TVL

Choose Kinetiq if you...

• ✓Want a liquid staking solution on HyperEVM
• ✓Prefer a verified and vetted protocol
• ✓Need features like liquid-staking and kHYPE
• ✓Need: Largest liquid staking protocol on Hyperliquid — kHYPE