Kinetiq announces Elysium L2 for Hyperliquid with HYPE as gas

Kinetiq, a liquid staking protocol within the Hyperliquid ecosystem, announces Elysium: a new layer 2 designed to improve HyperEVM performance and strengthen the connection with HyperCore. HYPE becomes the network’s gas token. Elysium focuses on spot trading, token launches, PropAMMs and HIP-3 perpetuals. Kinetiq’s native token, KNTQ, plays a central role in the distribution of sequencer revenues.

In short:

• Kinetiq introduces Elysium, an L2 built on Hyperliquid with HYPE as the gas token
• The focus is on spot trading, PropAMMs, token launches and HIP-3 perpetuals
• 50% of sequencer revenues go towards the buyback and burning of KNTQ

Elysium improves HyperEVM throughput and connectivity

Elysium is designed to increase HyperEVM throughput and improve the link with HyperCore. HyperEVM previously set a daily revenue record of $500.000, illustrating the growing interest in the Hyperliquid ecosystem.

Kinetiq positions Elysium as the first L2 that, according to the project, actually adds value to the underlying network. HYPE, which was trading around $81.41 at the time of the announcement, will become Elysium’s gas token.

Distribution of sequencer revenues

Of the sequencer revenues generated by Elysium, 50% goes towards the buyback and burning of KNTQ on the open market. That is Kinetiq’s own native token. The remaining 25% is reserved for developers building within the ecosystem, and the final 25% flows to the Kinetiq treasury.

In addition to the revenue structure, Elysium also introduces its own platform for token launches and works with so-called PropAMMs, a variant on automated market makers developed specifically for the network. Kinetiq names Hyperliquid as the native oracle for Elysium, meaning price data is fetched directly from HyperCore.

Kinetiq states in the announcement that Elysium’s sequencer is managed by its own team, while external parties can participate in the network as builders. A concrete launch date for Elysium has not yet been announced.