KittenSwap vs StakedHYPE

KittenSwap

KittenSwap is a community-owned decentralized exchange (DEX) built on HyperEVM that implements the ve(3,3) tokenomics model, positioning itself as the liquidity coordination layer for the Hyperliquid ecosystem. Self-described as a "metadex," KittenSwap aims to be not just a trading venue but a protocol that directs liquidity across the HyperEVM ecosystem by incentivizing liquidity providers through gauge voting and token emissions. The project launched in December 2024 and competes primarily against HyperSwap for DEX dominance on Hyperliquid's EVM-compatible layer. How It Works KittenSwap's technical architecture is built on Algebra Integral, a modular AMM framework that separates an immutable Core contract from a customizable Plugin layer. Algebra Integral powers over 50 DEXes with more than $150 billion in cumulative trading volume, providing battle-tested infrastructure that KittenSwap builds its HyperEVM-specific features on top of. The framework enables concentrated liquidity (CL) pools—where liquidity providers specify price ranges for their capital rather than providing liquidity across the full price curve—dramatically improving capital efficiency compared to traditional constant-product AMMs. At the economic layer, KittenSwap implements the ve(3,3) model, a tokenomics design originally popularized by Velodrome on Optimism and Aerodrome on Base. The system works as follows: KITTEN is the protocol's native token, emitted as liquidity incentives. Users who wish to participate in governance and earn fees lock KITTEN tokens in exchange for veKITTEN (vote-escrowed KITTEN), with longer lock periods conferring proportionally more veKITTEN. veKITTEN holders vote on which liquidity pools receive KITTEN emissions during each weekly epoch. Protocols and liquidity providers who want emissions directed to their pools must either acquire veKITTEN themselves or incentivize existing veKITTEN holders with external bribes. In return, veKITTEN voters earn 100% of the trading fees generated by the pools they vote for during that epoch. This design creates a flywheel: protocols needing deep liquidity compete to attract veKITTEN votes by offering bribes, which incentivizes users to lock KITTEN for longer periods, reducing circulating supply and creating scarcity pressure, which increases the attractiveness of KITTEN as a yield-bearing asset. KittenSwap supports both stable AMM pools optimized for pegged assets and volatile AMM pools for general token pairs, in addition to concentrated liquidity positions. Key Features - ve(3,3) Governance and Incentives: veKITTEN staking aligns liquidity incentives with protocol governance, enabling token holders to direct emissions each weekly epoch and earn fees from the pools they vote for. - Algebra Integral Architecture: Modular AMM design with concentrated liquidity support and a plugin system for future feature expansion without compromising core contract security. - Dual Pool Types: Support for both stable and volatile liquidity pools, accommodating pegged-asset trading alongside general token pairs with different pricing curves. - Bribe Marketplace: Protocols can post external incentives to attract veKITTEN votes toward their liquidity pools, creating a market-driven liquidity allocation mechanism. - DEX Aggregator Integration: KittenSwap is integrated into HyperEVM DEX aggregators such as LiquidSwap, routing trades through its pools alongside HyperSwap and Laminar for best-price execution. Team and Backing KittenSwap presents as a community-owned project, consistent with its positioning as the community-owned metadex. The founding team has not been publicly identified by name, maintaining pseudonymity. The project launched via a community-focused model without a disclosed institutional venture funding round, relying instead on a Token Generation Event and community participation for initial capitalization. The Twitter account (@KittenswapHype) was created in December 2024, aligning with the protocol's launch period. Delphi Digital published research coverage on KittenSwap in May 2025, suggesting institutional attention from crypto research firms even if not direct investment. Traction and Metrics KittenSwap launched in December 2024 as HyperEVM was in its early growth phase. By late March 2025, the protocol had recorded approximately $4.28 million in TVL and $2.72 million in trading volume. As context, the broader HyperEVM ecosystem had grown to approximately $900 million in total TVL by May 2025, with weekly DEX volume approaching $1 billion across all protocols. KittenSwap's position within this growing market has been as a challenger to HyperSwap, the larger and more Uniswap v2/v3-aligned DEX on HyperEVM. The KITTEN token has a total supply of 1.34 billion tokens with approximately 348 million in circulation as of early reporting. Competitive Position HyperSwap is KittenSwap's primary direct competitor on HyperEVM, and the two represent different philosophical approaches to DEX design. HyperSwap is based on Uniswap v2 and v3 architecture—familiar, proven, and widely integrated. KittenSwap adopts the Velodrome/Aerodrome model—more complex ve(3,3) governance but designed to be the liquidity backbone for the entire ecosystem rather than just a trading venue. In the broader DeFi context, the ve(3,3) model has been most successful when deployed early in a new ecosystem—Velodrome on Optimism, Aerodrome on Base—as it becomes the default liquidity layer for protocols launching on that chain. KittenSwap is pursuing the same playbook on HyperEVM, but with the disadvantage that HyperSwap launched earlier and captured initial TVL. The competitive outcome between the Uniswap-style and ve(3,3)-style DEX will likely depend on whether protocols choose to use KittenSwap's bribe marketplace to incentivize their liquidity. If HyperEVM produces a diverse set of new tokens and protocols needing deep, incentivized liquidity—as Optimism and Base did—KittenSwap's model is well-suited. If liquidity remains concentrated in a few large pools, HyperSwap's simpler model may suffice. Hyperliquid Integration KittenSwap is natively deployed on HyperEVM, Hyperliquid's EVM-compatible execution environment. It trades on HyperEVM's blockspace using the chain's native gas token and is fully integrated with HyperEVM's asset universe, including HYPE and other Hyperliquid-native tokens. The protocol's concentrated liquidity pools and ve(3,3) emission mechanics operate entirely within the HyperEVM environment. As HyperEVM grows and more protocols deploy there, KittenSwap's bribe marketplace becomes more relevant, as each new protocol needs to bootstrap liquidity for its native token. Risks and Considerations The ve(3,3) model is more operationally complex than standard AMM DEXes, creating a steeper learning curve for users and a more fragile flywheel that depends on continuous protocol participation. If KITTEN token value declines significantly, the economics of vote-locking deteriorate and veKITTEN governance becomes less competitive, potentially accelerating liquidity migration to simpler venues. The community-owned positioning, while aligning with decentralization values, also means the project lacks identified leadership accountable for development roadmap execution. HyperSwap's earlier launch and Uniswap brand recognition pose sustained competitive pressure. Additionally, KittenSwap's success is correlated with whether HyperEVM achieves broad developer and user adoption, a macro risk factor beyond the protocol's control.

StakedHYPE

StakedHYPE is the first liquid staking protocol for HYPE, Hyperliquid's native token, deployed on HyperEVM on the day of the chain's public launch in February 2025. The protocol issues stHYPE — a liquid staking token (LST) that represents a user's staked HYPE position plus accruing validator rewards — allowing holders to maintain exposure to staking yields while retaining the ability to use stHYPE as DeFi collateral across the Hyperliquid ecosystem. Originally developed by Thunderhead Labs under founder Addison Spiegel, stHYPE was acquired by Valantis Labs in August 2025 and continues to operate under Valantis management. HOW IT WORKS Native HYPE staking occurs on HyperCore, where token holders delegate HYPE to validators who participate in Hyperliquid's Proof-of-Stake consensus. However, native staking locks tokens in the staking account during the delegation period, making them unavailable for DeFi use. StakedHYPE solves this illiquidity problem through a standard liquid staking wrapper. When a user deposits HYPE into the StakedHYPE protocol on HyperEVM, they receive stHYPE at a ratio that starts at 1:1 and increases over time as validator rewards accumulate. The protocol distributes staked HYPE across a curated set of high-performance validators, optimizing for reward yield and operational reliability. Validator rewards — paid in HYPE by the Hyperliquid protocol — flow back into the pool and are reflected in the rising exchange rate between stHYPE and HYPE. This means stHYPE is a rebasing-free accumulating token: holders do not see their token count increase, but each stHYPE becomes redeemable for more HYPE over time. stHYPE is an ERC-20 token on HyperEVM, making it composable with the full suite of HyperEVM DeFi protocols. Users can deposit stHYPE as collateral in lending protocols, provide it as liquidity in DEX pools, or hold it passively to earn staking yields without any active management. Unstaking involves a redemption process subject to the underlying HyperCore unbonding period. KEY FEATURES - First-Mover LST on HyperEVM: stHYPE launched on day one of HyperEVM, establishing first-mover network effects across integrations and DeFi protocols before competitors could deploy - Decentralized Validator Distribution: HYPE is distributed across a network of high-performance validators rather than concentrated in a single operator, reducing single-point-of-failure risk - DeFi Composability: stHYPE is accepted as collateral and liquidity across all major HyperEVM protocols including lending platforms, AMM pools, and yield aggregators - Accumulating Token Model: stHYPE appreciates in HYPE terms automatically without rebasing, simplifying accounting for integrated protocols - Valantis-Backed Infrastructure: Following acquisition, stHYPE benefits from Valantis's specialized LST DEX pools — the two largest DEX pools on HyperEVM by TVL, with over $500M in cumulative volume TEAM AND BACKING StakedHYPE was founded by Addison Spiegel through his company Thunderhead Labs. Spiegel launched the protocol on HyperEVM's first day and rapidly grew it to peak TVL of approximately $500M — a remarkable achievement for a day-one DeFi deployment on a nascent chain. In August 2025, Valantis Labs acquired the stHYPE protocol for an undisclosed sum. Valantis, a modular DEX protocol, integrated stHYPE into its core product strategy, leveraging specialized LST-focused liquidity pools. Spiegel joined Valantis as an advisor following the acquisition. Valantis is led by co-founder and CEO Deven Matthews, who has publicly articulated a vision to build stHYPE into a "liquidity network for all of Hyperliquid." The acquisition price and financial structure were not disclosed, and no investment bank or legal advisor names were released due to contractual restrictions. TRACTION AND METRICS StakedHYPE launched on February 18, 2025, concurrent with HyperEVM's public debut. It rapidly became the dominant liquid staking solution on the chain, accumulating approximately $500M in TVL at its peak — at that time representing a substantial share of all HyperEVM DeFi TVL. By the time of the Valantis acquisition in August 2025, TVL had settled to approximately $200M, reflecting broader market conditions and competition from secondary LST protocols such as Kinetiq (kHYPE). Valantis's LST-specific DEX pools for stHYPE and kHYPE represented the two largest DEX pools on HyperEVM, with approximately $60M in combined TVL and over $500M in cumulative trading volume as of August 2025. stHYPE has been integrated into virtually every major HyperEVM DeFi protocol, including lending markets, yield aggregators, and AMM pools, demonstrating its status as core infrastructure rather than an isolated product. HyperEVM as a whole had grown to over $2 billion in TVL across approximately 100 protocols by August 2025, making it one of the fastest-growing EVM chains since its February launch — context in which stHYPE's $200M TVL represents a meaningful portion of chain activity. COMPETITIVE POSITION StakedHYPE's principal competitor is Kinetiq (kHYPE), which has emerged as the second-largest HYPE LST on HyperEVM. Both protocols compete for staked HYPE deposits by offering similar base functionalities: liquid staking derivatives redeemable for validator rewards. stHYPE's competitive advantages include first-mover integrations — being embedded in every major protocol before competitors arrived — and Valantis's specialized DEX infrastructure optimized for LST pair pricing efficiency. In the broader liquid staking context, stHYPE's position mirrors Lido's dominance of Ethereum staking (stETH) — a liquid token representing the canonical staking derivative for the chain's native asset, with deep DeFi integrations that make it the default choice. However, unlike Ethereum's staking ecosystem where Lido has held over 30% of all staked ETH, HYPE staking is newer and more fragmented, leaving competitive dynamics unsettled. The Valantis acquisition provides stHYPE with product and distribution advantages that independent protocols cannot easily replicate — specifically, a purpose-built DEX optimized for staked asset pairs. HYPERLIQUID INTEGRATION StakedHYPE connects HyperCore's staking layer with HyperEVM's DeFi ecosystem. HYPE tokens are transferred from HyperCore accounts to HyperEVM via Hyperliquid's native bridge, deposited into the StakedHYPE contract, and delegated to HyperCore validators — creating a cross-layer architecture unique to Hyperliquid's dual-layer design. The stHYPE token then circulates on HyperEVM as a standard ERC-20 asset. Valantis has indicated plans to deepen stHYPE's integration with HyperCore and HIP-3, envisioning stHYPE as a component of a broader Hyperliquid liquidity network. This could involve stHYPE being used as margin collateral in future HIP-3 perp market deployments or as a reference asset for new DeFi primitives. The Hyperliquid team's emphasis on staking tiers as a mechanism for validator differentiation may also create opportunities for stHYPE to offer tiered yield products. RISKS AND CONSIDERATIONS Validator concentration risk is inherent: if any validator to which stHYPE's underlying HYPE is delegated behaves maliciously, it faces slashing — which would reduce the stHYPE exchange rate and impose losses on depositors. The protocol's validator selection and diversification methodology is critical to managing this risk, though specific slashing parameters on Hyperliquid are determined by the core protocol. The acquisition by Valantis changes stHYPE's governance and strategic trajectory in ways that are not fully transparent to users. While Valantis is a credible team, the undisclosed deal structure and the fact that ongoing development is now tied to Valantis's broader roadmap introduces dependency risk. If Valantis changes strategic priorities or faces financial difficulties, stHYPE's development could stall. Smart contract risk on HyperEVM is present across all deposited capital. HyperEVM is a relatively young chain, and the full security implications of its architecture have not been tested by years of adversarial activity at scale. Users depositing HYPE into stHYPE accept both the validator slashing risk at the HyperCore layer and the smart contract risk at the HyperEVM layer simultaneously.

Choose KittenSwap if you...

• ✓Want a decentralized exchanges solution on HyperEVM
• ✓Need features like DEX and ve(3,3)
• ✓Need: ve(3,3) community-owned MetaDEX on HyperEVM — ~$32M TVL

Choose StakedHYPE if you...

• ✓Want a liquid staking solution on HyperEVM
• ✓Prefer a verified and vetted protocol
• ✓Need features like liquid-staking and stHYPE
• ✓Need: stHYPE liquid staking — stake HYPE, stay liquid