Kintsu, a cutting-edge liquid staking protocol with backing from notable investors such as Castle Island Ventures and Brevan Howard Digital, has officially launched its new offering, sHYPE, on the Hyperliquid mainnet. This strategic move aims to tackle the fragmentation prevalent in decentralized finance (DeFi) by introducing a robust system of decentralized validator curation and composable staking tokens.
The innovative model introduced by Kintsu transforms the traditional liquid staking approach on Hyperliquid, setting the stage for a governance system that functions akin to a competitive game. Within this framework, delegates are empowered to stake governance tokens and actively campaign for delegation opportunities by curating high-performing validator teams. In this ecosystem, validators vie for stake, while delegates compete for reputation and voting power, all driven by performance transparency. The interdependence of validator performance and yield generation ensures that success in the network fuels further growth, fostering a resilient and composable liquid staking token (LST) tailored for Hyperliquid.
Stephen, the founder of Kintsu, articulated the mission: “By transforming simply staked assets into programmable collateral, we catalyze growth by infusing the highest risk-adjusted yields and boosting chain GDP. At scale, liquid staking must be controlled transparently and programmatically; it is necessary and inevitable that LSTs become truly community governed, not run in an opaque discretionary fashion.” This ethos underpins Kintsu’s expansion to Hyperliquid, with the goal of enhancing resilience in liquid staking within the HyperEVM framework.
Hyperliquid’s significance in the DeFi landscape is undeniable, currently functioning as a vital hub with billions in daily trading volume, bolstered by HIP-3’s promotion of permissionless market creation. The launch of sHYPE contributes to this dynamic environment by facilitating:
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Validator Competition and Yield Structure: The decentralized validator registry enables competition among validators, with yield rates dictated by performance metrics, directly linking validator output to yield distribution.
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Composability and Integration: sHYPE is engineered for seamless integration with HyperEVM-based DeFi applications and yield strategies, utilizing CoreWriter contracts to enhance interoperability with Hyperliquid’s native staking layer.
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Liquidity and Governance Alignment: Unlike conventional locked staking mechanisms, sHYPE offers liquidity while encouraging composable capital allocation. Governance structures oversee the selection and curation of validators, striving for transparency and alignment of incentives among all stakeholders.
In addition, the initiative has already seen significant community engagement, with over 300,000 participants in the Beta Pass NFT. Building on this momentum, Kintsu has unveiled the Battle Pass Multiplier NFT, designed to incentivize participation in the evolving ecosystem. Individuals joining the waitlist will gain entry into a selection process for the Battle Pass, with opportunities to increase their chances through referrals, staking sHYPE tokens, and engaging with supported integrations.
Selected participants will receive the Battle Pass Multiplier NFT, which confers a multiplier effect of 1.5x Kintsu Points, providing an advantageous position in rank progression within the community-driven model of liquid staking. The focus on validator performance and participant activity is central to enhancing engagement and outcomes within this innovative system.
Kintsu is dedicated to redefining the structure of fragmented DeFi ecosystems through its unique approach to liquid staking, leveraging decentralized validator curation, composability, and a governance model rooted in credible neutrality. Further details can be found on their website.
