Hyperliquid is also getting a Layer2, what is Elysium?
Hyperliquid, a decentralized exchange, is set to launch its own Layer 2 solution called Elysium, developed by its largest liquid staking protocol, Kinetiq. This move aims to address key limitations in Hyperliquid's current ecosystem, particularly the performance and user experience issues on its existing HyperEVM.
The article explains that HyperEVM has struggled with network congestion, high gas fees (sometimes exceeding $10-$20 per simple swap), and a fragmented infrastructure for launching and trading new tokens, especially memecoins. While there is significant speculative interest, the current setup lacks the efficient trading infrastructure to sustain it.
Elysium is designed as a high-performance L2 that will use HYPE as its gas token. Its goals are to provide drastically faster block times and higher throughput compared to HyperEVM, create a seamless pipeline for token launches (from initial creation on Elysium to eventual listing as spot and perpetual markets on Hyperliquid's main chain, HyperCore), and offer developers richer access to HyperCore's order book data for better hedging and market-making.
The L2 is positioned not as a competitor to HyperCore but as a "value-accrual" layer that aims to drive more activity and volume back to the main chain. Potential use cases extend beyond memecoins to include complex applications like PaperTrade (a novel perpetual DEX) and other DeFi protocols requiring fast settlement and real-time data. Elysium's sequencer revenue is planned to be shared with applications, the Kinetiq treasury, and used to buy back and burn the KNTQ token.
marsbit08/25 01:56
