Kinetiq unveils Elysium L2 for Hyperliquid using HYPE as gas

Kinetiq, the protocol that controls roughly 82.5% of Hyperliquid’s liquid staking market, just announced it’s building an entirely new Layer 2 chain on top of the ecosystem. It’s called Elysium, and it wants to be the high-performance trading layer that Hyperliquid’s existing EVM environment hasn’t quite delivered. The pitch: faster block times, higher throughput, and native integration with HyperCore, Hyperliquid’s on-chain orderbook engine. The gas token will be HYPE, keeping everything composable with the broader Hyperliquid stack. And for the tokenomics crowd, half of all sequencer fees will flow directly into KNTQ buybacks and burns. What Elysium actually does Elysium is designed as a purpose-built execution environment for trading. Its target feature set covers spot trading, a new breed of automated market makers called PropAMMs, token launches, and perpetual contracts. Elysium’s sequencer fee model is structured with precision. Developers building on the chain receive 25% of fees. Another 25% goes to Kinetiq’s treasury. The remaining 50% funds KNTQ buybacks and burns, creating a deflationary loop tied directly to chain usage. Elysium also plans to introduce native oracles bu...