Kinetiq Team Announces Elysium L2 Network for Hyperliquid

cryptonews.ruPublished on 2026-08-25Last updated on 2026-08-25

Abstract

On August 24, the liquid staking protocol Kinetiq announced Elysium, a new L2 network for the Hyperliquid ecosystem. It aims to increase HyperEVM's throughput and simplify the launch of spot markets, tokens, and DeFi applications. Elysium will use $HYPE for gas fees and plans direct integration with HyperCore's trading engine, giving apps access to its liquidity and orderbook data. Technical details and partners will be revealed later, with a launch date set for "soon." A primary reason for Elysium's development is to overcome HyperEVM's limitations, such as low throughput and rising fees during high load. Kinetiq claims the L2 will start with significantly higher block production and transaction speeds, later aiming to approach HyperCore's performance. This targets applications needing frequent state updates like high-frequency spot trading and AMMs, and will provide them deeper access to HyperCore orderbook data. The network also proposes to streamline the process of launching new assets within Hyperliquid, allowing a token to progress from AMM liquidity to HyperCore's spot orderbook and eventually to perp markets via HIP-3 in a unified flow. Regarding revenue, Kinetiq's model allocates 50% of sequencer fees to buy back and burn $KNTQ, 25% to developers using Elysium's block space, and 25% to the Kinetiq treasury. Elysium marks Kinetiq's expansion beyond its core liquid staking product, kHYPE.

On August 24, the liquid staking protocol Kinetiq announced Elysium—a new L2 network for the Hyperliquid ecosystem. It is designed to increase the throughput of HyperEVM and simplify the launch of spot markets, tokens, and DeFi applications.

https://t.co/iqAIxGsPr5

— Kinetiq (@Kinetiq_xyz) August 24, 2026

$HYPE will be used to pay for gas on Elysium. The solution is planned to be directly integrated with the HyperCore trading engine, enabling applications to access its liquidity and order book data.

The technical specifications and list of partners will be revealed by the team later. An exact launch date has not yet been announced—Kinetiq stated it will happen "soon."

Accelerating HyperEVM

One of the reasons for developing Elysium was the limitations of HyperEVM. Kinetiq pointed to low throughput, rising fees during high load, and a two-block architecture.

The developers stated that at launch, the L2 network's block production speed and transaction processing capacity will be orders of magnitude higher than HyperEVM's metrics. Subsequently, they aim to bring the performance closer to that of HyperCore.

The changes are primarily aimed at applications requiring frequent state updates: high-frequency spot trading, automated market makers (AMM), and other DeFi services.

The team also intends to expand application access to HyperCore data. Currently, HyperEVM smart contracts mainly receive the best bid and ask prices via the L1Read mechanism. In Elysium, developers aim to be provided with deeper order book data and real-time quotes.

From Token Launch to Futures

Currently, launching a new asset within the Hyperliquid ecosystem involves several stages. The team needs to separately organize initial liquidity on HyperEVM, then list the token on the HyperCore spot market, and use the HIP-3 mechanism to launch perpetual futures.

Elysium proposes to consolidate this process. A token could first gain liquidity via an AMM, then move to the HyperCore spot order book, and later—to the perp market via HIP-3.

Half of Sequencer Revenue to be Directed Towards Burning $KNTQ

The Kinetiq team also presented Elysium's revenue distribution model. Half of the sequencer fees are planned to be used to buy back $KNTQ on the open market, with subsequent token burns through the Hyperliquid Assistance Fund.

Another 25% will go to developers of applications utilizing Elysium's block space. The remaining 25% will go to the Kinetiq treasury.

The new network will expand the project's business beyond the liquid staking of $HYPE. The protocol's main product remains kHYPE—a token users receive after locking Hyperliquid's token and can further use in DeFi.

Recall that in June, the exchange increased its open interest volume to $10 billion. The protocol ranked third among the largest platforms for perpetual futures trading.

Related Questions

QWhat is Elysium and which ecosystem is it designed for?

AElysium is a new L2 network announced by the liquid staking protocol Kinetiq, designed for the Hyperliquid ecosystem.

QWhich token will be used for gas fees in the Elysium network, and what key integration is planned for its trading engine?

A$HYPE will be used for gas fees in Elysium. It is planned to be directly linked to the HyperCore trading engine so applications can access its liquidity and orderbook data.

QWhat were the main technical limitations of HyperEVM that motivated the development of Elysium?

AThe main limitations were low throughput, increased fees during high load, and a two-block architecture.

QHow does Elysium plan to simplify the process of launching a new asset compared to the current multi-stage process on Hyperliquid?

AElysium aims to unify the process, allowing a coin to first gain liquidity via an AMM, then enter the HyperCore spot orderbook, and later list on the perp market via HIP-3.

QWhat is the proposed revenue distribution model for Elysium's sequencer fees?

A50% will be used to buy back and burn $KNTQ, 25% will go to developers using Elysium's block space, and the remaining 25% will go to the Kinetiq treasury.

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