Kinetiq has unveiled Elysium, a new layer-2 network built around the Hyperliquid ecosystem and designed to improve transaction capacity, trading infrastructure, and application performance.<\/p>\n\n\n\n
Announced on Aug. 24, Elysium will use HYPE as its native gas token rather than introducing a separate asset. The network is expected to support spot trading, proprietary automated market makers, token launches, and HIP-3 perpetual markets.<\/p>\n\n\n\n
Kinetiq described the launch as \u201cimminent,\u201d although it has not yet provided an official mainnet date, detailed technical specifications, audited code, or launch partners.<\/p>\n\n\n\n
One of Elysium’s main goals is to address performance constraints that Kinetiq says currently affect HyperEVM.<\/p>\n\n\n\n
HyperEVM provides an Ethereum-compatible environment within the broader Hyperliquid ecosystem, but Kinetiq argues that its dual-block architecture and limited capacity can create challenges during periods of heavy network activity.<\/p>\n\n\n\n
According to the company, transaction fees for a basic token swap have climbed as high as $20 during periods of congestion.<\/p>\n\n\n\n
Elysium is being developed as another Ethereum-compatible execution environment but with tighter integration with HyperCore, Hyperliquid’s native trading and order-book infrastructure.<\/p>\n\n\n\n
Kinetiq claims the network will eventually deliver performance significantly above HyperEVM and aims to move closer to HyperCore’s block times.<\/p>\n\n\n\n
However, those claims have not yet been independently demonstrated. The company has not released benchmarks or detailed specifications showing exactly how much faster Elysium will be.<\/p>\n\n\n\n
As a result, its expected speed and transaction capacity remain development targets until the network launches and real-world data becomes available.<\/p>\n\n\n\n
A notable part of Elysium’s design is its decision to use HYPE for gas fees.<\/p>\n\n\n\n
Rather than requiring users to acquire a new token to interact with the network, transactions on Elysium will be paid for using Hyperliquid’s existing HYPE token.<\/p>\n\n\n\n
This could make it easier for users to move between HyperCore, HyperEVM, and Elysium without managing another network asset.<\/p>\n\n\n\n
It may also create an additional source of utility and demand for HYPE if Elysium attracts meaningful transaction activity.<\/p>\n\n\n\n
How significant that demand becomes will ultimately depend on adoption, transaction volumes, and the amount of gas consumed by applications running on Elysium.<\/p>\n\n\n\n
Kinetiq has not yet provided detailed information explaining exactly how collected gas payments will be managed beyond its planned sequencer-fee distribution model.<\/p>\n\n\n\n
Elysium is also expected to provide applications with greater access to trading information from HyperCore.<\/p>\n\n\n\n
HyperEVM currently uses an L1Read precompile that allows smart contracts to access information including asset prices and order-book data from HyperCore.<\/p>\n\n\n\n
Kinetiq plans to modify and expand this functionality for Elysium.<\/p>\n\n\n\n
According to the project, applications will eventually be able to access more market information than simply the best bid and ask prices.<\/p>\n\n\n\n
This additional data could be especially useful for proprietary automated market makers, or PropAMMs, that need detailed market information to calculate prices, manage liquidity, and hedge positions.<\/p>\n\n\n\n
Kinetiq has not yet published the complete list of data fields that applications will be able to access, so the exact scope of the integration remains unclear.<\/p>\n\n\n\n
Elysium will also introduce a fee-sharing model designed to connect network activity with the KNTQ token.<\/p>\n\n\n\n
Kinetiq plans to use 50% of Elysium’s sequencer fees to purchase KNTQ from the open market.<\/p>\n\n\n\n
Tokens acquired through these programmatic purchases would then be sent to the Hyperliquid Assistance Fund and permanently burned.<\/p>\n\n\n\n
The system effectively links KNTQ buybacks with activity on Elysium. If the network generates substantial transaction volume and sequencer revenue, it could create recurring market purchases of the token while also reducing circulating supply through burns.<\/p>\n\n\n\n
However, the size of that effect will depend heavily on actual network usage and fee revenue.<\/p>\n\n\n\n
Kinetiq has not announced minimum buyback commitments or revenue projections for Elysium.<\/p>\n\n\n\n
The remaining half of sequencer revenue will be divided between application developers and Kinetiq itself.<\/p>\n\n\n\n
Applications consuming Elysium blockspace will receive 25% of sequencer fees.<\/p>\n\n\n\n
Developers could potentially use those funds for incentives, transaction rebates, liquidity programs, or other operating expenses.<\/p>\n\n\n\n
Another 25% will be directed to the Kinetiq treasury.<\/p>\n\n\n\n
The structure gives builders a direct financial incentive to create applications capable of attracting transaction activity to Elysium while also giving Kinetiq a source of revenue from network growth.<\/p>\n\n\n\n
Meanwhile, the 50% allocation toward KNTQ purchases and burns is intended to connect broader network adoption with the token’s economics.<\/p>\n\n\n\n
Kinetiq already has a significant presence within decentralized finance.<\/p>\n\n\n\n
According to DefiLlama figures cited in the original report, the protocol holds approximately $1.26 billion in total value locked.<\/p>\n\n\n\n
It also generated roughly $1.65 million in protocol fees during the previous 30 days.<\/p>\n\n\n\n
However, these figures relate to Kinetiq’s existing products and should not be interpreted as projected revenue for Elysium.<\/p>\n\n\n\n
The new L2 will need to attract its own developers, traders, liquidity, and transaction activity before its economic performance can be properly evaluated.<\/p>\n\n\n\n
Another major part of the Elysium strategy involves connecting token creation with spot and perpetual trading markets.<\/p>\n\n\n\n
Kinetiq plans to offer a token-generation system that could allow projects to launch assets initially through long-tail automated market makers.<\/p>\n\n\n\n
Successful assets could later pursue listings on HyperCore’s spot markets and potentially launch perpetual contracts through HIP-3.<\/p>\n\n\n\n
HIP-3 allows qualified external builders to deploy perpetual markets on HyperCore after meeting certain staking and technical requirements.<\/p>\n\n\n\n
The system has expanded Hyperliquid’s market infrastructure beyond assets launched directly by its core team and can support markets linked to cryptocurrencies, equities, commodities, and other assets.<\/p>\n\n\n\n
Kinetiq wants Elysium to connect these different stages within one broader environment.<\/p>\n\n\n\n
A project could potentially issue its token, establish liquidity through PropAMMs, develop a spot market, and eventually support perpetual trading within the wider Hyperliquid ecosystem.<\/p>\n\n\n\n
Each stage would still depend on liquidity, technical requirements, and Hyperliquid’s applicable market-deployment rules.<\/p>\n\n\n\n
While the Elysium announcement outlines an ambitious vision, several important details remain unavailable.<\/p>\n\n\n\n
Kinetiq has not yet published the network’s full technical architecture, independent security audits, infrastructure partners, launch applications, or a confirmed mainnet date.<\/p>\n\n\n\n
It has also not released performance benchmarks supporting its claim that Elysium can operate substantially faster than HyperEVM.<\/p>\n\n\n\n
Those details will be important for determining whether the network can deliver the performance improvements being promised.<\/p>\n\n\n\n
Security audits will be particularly important because Elysium is expected to support trading applications, token launches, and potentially substantial amounts of user capital.<\/p>\n\n\n\n
Until those materials are available, many of the project’s performance and scalability claims should be considered forward-looking.<\/p>\n\n\n\n
If Elysium performs as intended, it could expand the range of applications available within Hyperliquid while giving developers another Ethereum-compatible environment designed specifically for trading-focused applications.<\/p>\n\n\n\n
Using HYPE for gas could also strengthen the token’s role across the ecosystem, while Elysium’s sequencer-fee model could create an additional economic mechanism for KNTQ.<\/p>\n\n\n\n
The proposed combination of token issuance, PropAMM liquidity, spot markets, and HIP-3 perpetuals could make Elysium an important infrastructure layer for projects seeking to build around Hyperliquid.<\/p>\n\n\n\n
For now, however, the project’s next major milestones will be more concrete ones: technical documentation, audited code, infrastructure partnerships, and an official mainnet launch schedule.<\/p>\n\n\n\n
Those developments will provide a clearer picture of whether Elysium can turn Kinetiq’s performance claims into a functioning high-capacity L2 network.<\/p>\n\n\n\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
Kinetiq has unveiled Elysium, a new layer-2 network built around the Hyperliquid ecosystem and designed to improve transaction capacity, trading infrastructure, and application performance. Announced on Aug. 24, Elysium will use HYPE as its native gas token rather than introducing a separate asset. The network is expected to support spot trading, proprietary automated market makers,…<\/p>\n","protected":false},"author":3,"featured_media":16214,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[63,70],"tags":[65,633,2325],"class_list":["post-16213","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","category-finance","tag-crypto","tag-hyperliquid","tag-kinetiq"],"yoast_head":"\n