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Stake HYPE with Kiln, enterprise-grade staking
Hyperliquid
What is Hyperliquid?
Hyperliquid is a high-performance Layer-1 blockchain protocol designed to facilitate decentralized finance (DeFi) applications with exceptional speed and efficiency. Its flagship application is an on-chain order book decentralized exchange (DEX) for perpetual futures, offering traders a user experience comparable to centralized exchanges but within a decentralized framework. Hyperliquid’s architecture supports rapid transaction processing, handling up to 100,000 orders per second with block latencies under one second, achieved through its custom consensus algorithm, HyperBFT.
What sets Hyperliquid apart from other blockchain protocols is its comprehensive integration of various financial components into a single, cohesive system. Beyond its DEX, Hyperliquid introduces a native token standard (HIP-1) and an automated on-chain liquidity system (HIP-2), enabling seamless token creation and liquidity management without relying on third-party market makers. This holistic approach ensures that every order, cancellation, trade, and liquidation occurs transparently on-chain, enhancing security and user trust. Additionally, Hyperliquid’s gasless trading model eliminates transaction fees for trades, further distinguishing it from other platforms and making it an attractive option for both traders and developers in the DeFi space. 
What is staking?
Proof-of-Stake is a consensus algorithm that relies on a stake rather than a proof of work. This makes it more efficient and environmentally adapted. By offering a stake in the form of locked tokens into a smart contract. This stake is used to secure the chain and validate blocks.
By locking a protocol’s native tokens (ie HYPE) to give “validators” the right to secure a chain. Validators propose new blocks or attest other validators’ blocks, gaining rewards for doing so.
Why should you stake your assets?
Staking is one of the safest and most predictable ways to get rewarded in the crypto space as the value originates from the blockchain’s native currency inflation and a share of transaction fees. You help secure the network and get rewarded by staking your HYPE .
If you do not stake, your asset's token share will be diluted among other people’s tokens that are being staked and accumulating new tokens into the network.
You can stake your HYPE as well as other (d)PoS cryptocurrencies to:
- 1Put your treasury to work
- 2Diversify and earn, while contributing to blockchains decentralization
- 3Bring new opportunities by enabling your users to earn staking rewards
Why should you stake your HYPE with Kiln?
Kiln is the leading enterprise-grade staking platform, enabling institutional customers to stake HYPE, and to whitelabel HYPE staking functionality into their offering. Our platform is API-first and enables fully automated validators, rewards, data, and commission management.
Our clients can stake their tokens from our dashboard, a hardware wallet, a browser wallet, a B2B custodian, a crypto exchange, or just their favorite investment app. Kiln makes staking HYPE easy, secure, and accessible to everyone.
Kiln has been closely working with Hyperliquid to make sure we provide the best staking experience as possible.
We are serving thousands of businesses worldwide so that everyone can securely and seamlessly:
- Excellent track record in staking on 40+ protocols, managing more than $10b in stakes.
- Trusted by industry leaders such as Ledger, Lido, Coinbase Cloud, Bitpanda, Crypto.com and many more!
- Non-custodial, work with your existing custodians solutions e.g.Ledger, Fireblocks
- SOC 2 Type II certified and Industry leading SLAs (0 penalties recorded and 99.95% effective uptime)
Protocol card:
Consensus
DPoS
Token
HYPE
GRR
2% to 2,5%
Number of validators
16
Hyperliquid FAQ
What does Proof-of Stake mean?
Proof-of-Stake (PoS) is a type of consensus mechanism used to validate cryptocurrency transactions. Through PoS, validators can contribute to the block production of a chain while keeping environmental concerns to a minimum, which is becoming an increasingly large issue in Proof-of-Work.
By staking capital rather than energy, validators risk losing a portion of their value and future potential for staking by misbehaving while creating blocks. This incentives collaboration and fair practices while validating information in a similar way that PoW has with incentives and punishments to curtail malicious activity in the consensus process.
Do I maintain custody of my HYPE tokens? Is HYPE staking non-custodial?
While you may maintain self-custody of your staked HYPE (ideally using a Ledger hardware wallet), you may also choose a third-party custodian to control the withdrawal of your staked HYPE (i.e. Fireblocks).
What are the risks when staking HYPE?
While there is currently no automatic slashing implemented on the L1, which means stakers are not penalized by having their staked tokens forcibly reduced for validator misbehavior, other risks exist. For instance, validators may be jailed if they fail to respond adequately to consensus messages, resulting in the suspension of their participation in consensus and the cessation of rewards for their delegators. Although jailing is not equivalent to slashing, it can still impact the rewards that stakers earn.
How do rewards work on Hyperliquid?
The HYPE staking reward rate is inversely proportional to the square root of the total HYPE staked, inspired by Ethereum’s model. For example, with 400 million HYPE tokens staked, the annual reward rate is approximately 2.37%. These rewards are sourced from the future emissions reserve.
Rewards are accrued every minute and distributed to stakers daily. They are automatically redelegated to the staked validator, enabling compounding without manual intervention. It’s important to note that while staking rewards are consistent, they are subject to change based on the total amount of HYPE staked across the network. Additionally, transfers from the staking account to the spot account are subject to a 7-day unstaking queue, ensuring network stability.
What is the average block time on Hyperliquid?
The block time is ~1 sec on Hyperliquid.
What is a Gross Reward Rate (GRR) and how is it different from a Net Reward Rate (NRR)?
In the context of Proof-of-Stake blockchains, the gross reward rate (GRR) refers to the total or gross amount of rewards earned from staking before deducting any fees or expenses. This is a reward rate that fluctuates with the operations of the protocol and the performance of validators, it is not set by Kiln. The net reward rate (NRR), on the other hand, takes into account the deductions or expenses, providing a measure of the actual rewards received after subtracting fees or costs.
Where can I learn more about Hyperliquid?
You can learn more about Hyperliquid on the Hyperliquid website and docs.