Kinetiq unveiled Elysium on Aug. 24, a Layer-2 network designed to improve transaction capacity inside the Hyperliquid ecosystem while using HYPE as its native gas token from launch.
The network will focus on spot trading, proprietary automated market makers (PropAMMs), token launches and HIP-3 perpetual markets. Kinetiq says Elysium will provide an Ethereum-compatible execution environment with deeper links to HyperCore, Hyperliquid’s native order-book and trading infrastructure.
Kinetiq argued that HyperEVM’s dual-block architecture and limited capacity create problems for traders and developers, noting that simple swap costs have reached as much as $20 during periods of heavy activity. It claims Elysium will deliver performance “orders of magnitude” above HyperEVM, but has not yet published benchmarks, technical specifications, audited code, launch partners or a mainnet date.
The fee model allocates 50% of Elysium sequencer fees to open-market purchases of KNTQ, with acquired tokens sent to the Hyperliquid Assistance Fund for burning. Another 25% will go to applications consuming Elysium blockspace for rebates or incentives, and the remaining 25% will enter the Kinetiq treasury. Kinetiq currently holds about $1.26 billion in total value locked, with roughly $1.65 million in protocol fees over the preceding 30 days, according to DefiLlama.
Elysium will also modify Hyperliquid’s L1Read precompile to expose more HyperCore trading information to applications. Kinetiq expects PropAMMs to use that data when pricing and hedging positions. The project described the launch as “imminent,” but further verified updates on architecture, audits, partners and scheduling are still pending.
