stHYPE Liquid Staking

If you do not have any HYPE, you can purchase some via Hyperliquid.

Step 1: Head to stakedHYPE.fi/stake and connect your wallet.

Step 2: Enter the amount of HYPE you want to stake and approve the amount.

Step 3: Submit the stake transaction and confirm it in your wallet.

A holder of HYPE who wants to participate in the security of the protocol can stake their HYPE to receive an equal amount of stHYPE in return. The stHYPE will automatically increase in number in your wallet as protocol rewards to the underlying validators. At any time, you may transfer or participate in DeFi with your stHYPE token. Users can unstake their stHYPE at any time, and once the protocol unbonding period has passed, may claim an equal amount of HYPE in return.

There are a few potential risks when staking HYPE.

Smart Contract Security: There is a risk that stHYPE contains a smart contract vulnerability. However, the code is open-sourced, audited and covered by a bug bounty program. While we do our best, we cannot guarantee that there is no risk.

Slashing Risk: The Hyperliquid blockchain slashes the stake of validators that go offline or act maliciously. Although we have automated deployment tools, bespoke monitoring systems, and a multi-region/datacenter redundancy setup, there is still the risk that these precautions fail and the protocol slashes the underlying validators.

stHYPE Discount Risk: Due to the inherent nature of liquid staking, liquid staking representative tokens can trade at a discount due to the underlying asset being staked and thus illiquid. It is possible that the HYPE/stHYPE price could decline significantly due to market conditions. This is not a significant problem though, since users can redeem their stHYPE for HYPE via an unstake.

Custody Risk: Thunderhead maintains custody of the underlying HYPE. We have internal controls, dedicated key management software, and employ encrypted disks, among a variety of other measures. Although extremely unlikely due to the precautions we put in place, ultimately stHYPE is not trustless, and the underlying HYPE may become lost to theft or exploit. Thunderhead is also a U.S registered LLC, and the entire team is “doxxed.”

Please note that this is not an exhaustive list of all the risks related to staking.

The protocol rewards generated from the underlying validators minus a fee go to the stakers.