Kinetiq Elysium: first HyperEVM L2 and what it means for KNTQ
Quote448 words
Elysium is an L2 using HYPE as gas, with much faster blocks and a free native oracle via customized L1Read so PropAMMs can quote tighter. Sequencer fees split 25/25/50 among builders, treasury and buybacks; he sees it as +EV for Hyperliquid and Kinetiq.
Key claims
Sequencer fees split 25/25/50 between builders, treasury and buybacks
HYPE is the gas token
HyperEVM contributes little to Hyperliquid revenue, so no cannibalization
Kinetiq keeps expanding and HyperEVM gets its first L2.
Meet Elysium.
HyperEVM has often been criticised for comparably low throughput, limited scale (resulting in high tx cost), and a lack of successful apps at scale.
And while HyperEVM does have its very own USPs (interoperability with HyperCore and precompiles), it’s definitely not specifically fast or cheap, putting it at a disadvantage vs most competitors (e.g. Solana or Robinhood).
Elysium aims to fix that, providing a near-term scalability solution, leveraging built on top of HyperEVM.
TL;DR ↓
- hyperliquid:native is the gas token, so no net new asset friction, and Elysium retains full composability with HyperCore and HyperEVM
- The core USP is speed with day 1 block times “orders of magnitude” faster than HyperEVM as per the announcement, and eventual HyperCore block time parity as the target
- The underlying thesis is that Hyperliquid spot is underutilized, and that a high-performance environment like Elysium can make HL spot competitive with CEXs and other onchain venues
- By customizing the L1Read precompile into a free native oracle with top of block freshness (beyond just BBO), Elysium aims to enable PropAMMs to quote tighter and hedge directly against HyperCore
- Given the low relevance / share in context of Hyperliquid’s revenue that HyperEVM contributes, there is also no cannibalization of the base layer. Especially counting in the ecosystem benefits / potential network effects, the direct composability and integration with HyperCore, as well as usage of $HYPE as gas currency, makes this a much more +EV kind of L2 setup for HL than many precedents from Ethereum world.
- Elysium also aims to become a token launch platform that manages the full lifecycle in one ecosystem (launch on long tail AMM > graduate to PropAMMs > bootstrap HyperCore spot orderbook > HIP-3 perp listing)
- Economics are bullish kinetiq:native with sequencer fees split 25/25/50 among builders, treasury, and programmatic buybacks (burned via Assistance Fund).
We dont have the full picture just yet and are still waiting for tech specs / partners announcements.
But while Elysium is definitely not necessarily a bullcase confirmation for HyperEVM (as alignment kinda rests on its economic irrelevance to HL kek), it’s imo def +EV for the Hyperliquid ecosystem in the short-mid term (and possibly beyond), and thanks to the value accrual mechanisms for $KNTQ, def strengthens the @Kinetiq_xyz bull thesis.
Looking forward to seeing this one play out.
What’s your take an0n?
And since we’re talking about HyperEVM already, here is another upcoming project I’m looking forward to a lot.
Fully onchain synthetic perps with up to 1000x leverage, 0 slippage, no funding and self-bootstrapping LPs built on HyperEVM’s BBO precompile.
TL;DR on @papertrade_xyz below ↓
QUOTING @Kinetiq_xyz
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What came next · since 24 Aug 2026
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