stHYPE (Staked HYPE)

stHYPE is a liquid staking token (LST) solution for the Hyperliquid network, enabling users to stake HYPE tokens to earn staking rewards while maintaining liquidity. The protocol issues stHYPE tokens that can be used across the Hyperliquid ecosystem, providing faster withdrawals and integration with DeFi applications.

stHYPE earns yield from two main sources:

• Base staking rewards from the Hyperliquid Proof-of-Stake network (the system that validates transactions).
• Additional yield paid by businesses on Hyperliquid — specifically HIP-3 compliant projects and stablecoin services — that must stake HYPE tokens to operate.

When you hold stHYPE, you are essentially staking HYPE through a liquid staking service. The key benefit: you keep earning staking rewards without locking up your tokens. You can still use stHYPE across the Hyperliquid ecosystem while your underlying HYPE is at work.

The protocol makes withdrawals faster than standard unstaking through a few methods: a reserve buffer of tokens, netting incoming mints against withdrawals, and secondary market liquidity provided by Stake Exchange (STEX).

Value flows from businesses that need to stake millions of HYPE to run their operations. The protocol collects that value and passes it on to stHYPE holders. You don't need to claim or reinvest anything — yield accrues automatically. The stHYPE token itself increases in value relative to HYPE, reflecting accumulated staking rewards and fee distributions over time.