Modular decentralized exchange Valantis has officially acquired stHYPE, the second-largest liquid staking protocol on Hyperliquid's HyperEVM blockchain. Announced on August 19, 2025, this strategic move integrates stHYPE's over $200 million in total value locked (TVL) directly into Valantis's ecosystem.
The acquisition marks a pivotal step in Valantis's plan to transform stHYPE into a foundational liquidity network within Hyperliquid. Valantis will take complete control of stHYPE's development, operations, and communication. The integration begins with a migration to CoreWriter, a system designed to enhance security and transparency by improving off-chain infrastructure monitoring.
Following the initial phase, stHYPE will evolve into a modular liquid staking token supporting multiple staking addresses and enabling new permissionless interactions between DeFi and staking applications. This modular base is expected to connect staking with trading, lending, and HyperCore's derivatives markets, offering liquidity providers more ways to participate from a single HYPE deposit.
The acquisition occurs amid growing competition within Hyperliquid's liquid staking market, where kHYPE has emerged as the dominant LST with over a billion dollars in TVL. Valantis aims to close this gap by vertically integrating trading and staking, transforming its DEX into a liquidity hub. The strategy also expands STEX pools, which support efficient swaps and lending market integrations without staking withdrawal queues.
Community incentives will expand through integrator rewards to ensure stHYPE's continued adoption across Hyperliquid's protocols. This consolidation highlights a broader trend in DeFi towards service integration for enhanced capital efficiency and user experience.