Valantis has moved to solidify its role in the liquid staking sector with the acquisition of stHYPE, the second-largest staking protocol on Hyperliquid’s HyperEVM.
The deal, announced on August 19, brings stHYPE fully under the Valantis ecosystem, opening the door to enhanced yield opportunities, deeper liquidity, and an expanded roadmap for Hyperliquid’s decentralized finance landscape.
Valantis has acquired the @stakedhype protocol.
Re-Introducing $stHYPE, the Modular LST: pic.twitter.com/An6t9v6smG
— Valantis Labs (@ValantisLabs) August 19, 2025
Under the agreement, Valantis assumes full responsibility for stHYPE’s development, operations, and communication strategy. The transition will roll out in phases, beginning with a migration to CoreWriter, a system designed to improve security and transparency by strengthening monitoring of off-chain infrastructure. Community incentives will also broaden with new integrator rewards aimed at sustaining adoption across Hyperliquid’s protocols.
The second stage will introduce a modular liquid staking framework, allowing stHYPE to support multiple staking addresses and foster permissionless interactions between staking and DeFi applications. This modular design is expected to link staking directly with trading, lending, and HyperCore’s derivatives markets—enabling liquidity providers to maximize participation through a single HYPE deposit.
The move comes at a time of mounting competition in Hyperliquid’s staking arena. Rival protocol kHYPE currently dominates the market, holding more than $1 billion in total value locked. By acquiring stHYPE, Valantis aims to narrow that gap and position its decentralized exchange as a liquidity hub that vertically integrates staking with trading. The strategy also strengthens its STEX pools, which already enable efficient swaps and lending market integrations without the delays of traditional withdrawal queues.
As Hyperliquid’s liquid staking market evolves, competition has shifted beyond yield rates toward liquidity depth, DeFi interoperability, and value-added services. Valantis is betting that its merger with stHYPE will secure a stronger foothold in an ecosystem that continues to attract new participants and innovations.
Meanwhile, Hyperliquid rolled out a revamped fee discount system and a new account linking feature on May 5. These updates aimed to enhance trading incentives and user flexibility on the platform.
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