"Markets" is the first decentralized exchange in the HYPE ecosystem built on the HIP-3 protocol. It supports perpetual contracts for traditional assets such as BABA stock, crude oil indices, bond indices, and more.
The Kinetiq protocol, which underpins its growth, currently manages over $700 million in TVL (Total Value Locked). This figure is becoming the foundation for liquidity expansion throughout the ecosystem.
HYPE Ecosystem: Unlocking Native Asset Potential with LST
As a high-performance Layer 1 blockchain gaining significant attention in the decentralized finance (DeFi) space, Hyperliquid was designed from the ground up to optimize decentralized perpetual contract trading.
Hyperliquid’s core strengths lie in its fully on-chain order book and zero gas fee trading experience, distinguishing it from other DEXs.
According to CoinMarketCap, as of February 10, 2026, the HYPE token is priced at $30, with a market capitalization reaching $7.7 billion and a 24-hour trading volume of $9.57B—demonstrating strong market influence.
Unlike many emerging public blockchains, Hyperliquid excels in fast transaction confirmations and robust security, thanks to its proprietary HyperBFT consensus mechanism. The development team’s impressive background includes alumni from Harvard, Caltech, and MIT.
Kinetiq’s Evolution: From LST Protocol to Exchange Curation Platform
Within the Hyperliquid ecosystem, Kinetiq—the largest liquid staking protocol—plays a pivotal role. Kinetiq boasts over $700 million in TVL, primarily sourced from HYPE’s liquid staking token, kHYPE.
In an interview, Kinetiq founder Omnia stated, "We firmly believe Hyperliquid’s moat is enduring." He highlighted three core advantages:
- Hyperliquid has established strong network effects between market makers and takers; even after airdrop events, the data remains robust.
- The core team is focused on infrastructure optimization, enabling ecosystem partners to build products atop it.
- The team demonstrates world-class execution and integrity, instilling high confidence among ecosystem participants.
Kinetiq stands out not only as an LST protocol but also as an "exchange curation platform." Leveraging Hyperliquid’s HIP-3 protocol, Kinetiq’s Launch platform pioneered the "exchange-as-a-service" business model.
Integrated Model: How LST Powers the "Exchange Factory"
The HIP-3 protocol marks a major upgrade for the Hyperliquid ecosystem, transforming HyperCore from a product into a platform. Within this model, Kinetiq’s flagship DEX product, "Markets," was launched.
As a universal HIP-3 DEX, Markets differentiates itself through unique strategies:
- Asset selection: Introducing highly sought-after traditional assets into the perpetual contract framework, with meticulous attention to oracle construction.
- Liquidity: Committed to building a top-tier liquidity environment.
- User experience: Delivering premium UI/UX and user guidance.
- Cost competitiveness: Utilizing USDH as collateral, offering discounts aligned with quoted assets.
The Kinetiq ecosystem injects liquidity into the exchange factory model. Funds attracted through the LST protocol are efficiently allocated to newly launched HIP-3 exchanges, creating a virtuous cycle. This approach aligns with the "full Web3 operating system" strategy pursued by leading exchanges like Gate, expanding trading platforms into comprehensive ecosystems.
Tokenomics: Dual Mechanisms Create a Value Loop
Kinetiq’s tokenomics are both sophisticated and pragmatic. The newly launched $KNTQ token is closely tied to ecosystem growth. Markets distributes 10% of its revenue to kHYPE holders, with the remaining 90% dedicated to ecosystem expansion.
This allocation strategy supports a long-term vision—continually rewarding and retaining core participants. It stands in stark contrast to the cash-out mentality seen in many "token factory" projects.
Kinetiq has also partnered with Hyperion DeFi to launch iHYPE, a permissioned, KYC/KYB-compliant liquidity pool. This innovation provides a compliant gateway for traditional financial institutions to participate in the Hyperliquid ecosystem and could become a primary bridge for institutional capital entering the space.
Outlook: Bridging Traditional Finance and Decentralized Markets
The Kinetiq team conducted an in-depth analysis of 24/7 perpetual contract trading for stocks, revealing that 30–55% of trading volume occurs outside traditional market hours. This finding strongly validates the ability of decentralized markets to fill gaps left by traditional finance.
Perpetual contracts offer both retail and institutional participants more direct leverage tools than options. Unlike options, which require consideration of volatility and time decay, perpetual contracts have a Delta of 1, so returns are entirely based on price movement—lowering the barrier to entry.
When it comes to attracting institutional capital, Hyperliquid’s unique advantage is its accessibility for traditional finance to evaluate from a fundamental perspective. HYPE’s DAT and ETF performance potential far exceeds that of many other projects.
With Markets launching and supporting USDH stablecoin as collateral, the Hyperliquid ecosystem is building a trading environment that connects with traditional finance while preserving the advantages of decentralization.
Conclusion
As the crypto industry shifts from simple "token factory" models to more sustainable ecosystem development, the collaboration between Hyperliquid and Kinetiq offers a valuable blueprint.
This is not about simply increasing the number of tokens—it’s about building genuine financial infrastructure. When LST protocols deeply integrate with exchange factories, the result is not a zero-sum game, but true network effects and value growth.
Under the "full Web3 operating system" trend led by exchanges like Gate, this deeply integrated ecosystem model may represent the industry’s future—not just trading assets, but constructing a complete value internet.
