Hyperliquid, a decentralized trading platform, is set to launch its first dedicated Layer 2 network, Elysium, aiming to significantly expand its infrastructure. The public mainnet deployment is scheduled for November 9, introducing faster and higher-frequency transaction capabilities to Hyperliquid’s ecosystem. Elysium will use HYPE, the platform’s native token, as its gas token for transaction fees.
Elysium network architecture and deployment
Elysium has been developed in partnership with Kinetiq, a protocol focused on liquid staking. The new Layer 2 network is designed to deliver rapid and reliable infrastructure for decentralized trading applications. Kinetiq announced that Elysium will operate as an Arbitrum Orbit rollup, allowing transaction settlement on HyperEVM, Hyperliquid’s smart contract environment compatible with Ethereum.
In recent weeks, Elysium underwent a public testnet phase. While Kinetiq has outlined plans for the mainnet launch, confirmation of the activation on November 9 remains subject to development progress.
Elysium aims to produce blocks every 100 milliseconds, targeting one of the fastest block intervals among comparable Layer 2 networks.
The network’s technical documentation states that Elysium will support up to 300 million gas units per second. However, these figures represent target capacities rather than verified performance on the operational mainnet.
Currently, Hyperliquid features two major components: HyperCore, which enables spot and perpetual futures trading, and HyperEVM, its Ethereum-compatible smart contract layer. The addition of Elysium introduces a new high-speed execution environment for applications that require rapid and frequent transactions.
Mini dictionary: Kinetiq – A liquid-staking protocol that facilitates staking of tokens while enabling users to maintain liquidity, often by issuing derivative tokens representing staked assets.
HYPE token utility and bridging mechanism
Distinct from some Layer 2 projects that launch separate tokens, Elysium uses HYPE for its native gas, further extending HYPE’s role within Hyperliquid’s ecosystem. Users will be able to bridge HYPE from HyperEVM to Elysium on a one-to-one basis, streamlining the movement of value and utility between both environments.
This arrangement broadens HYPE’s practical uses, adding to its existing functions in staking, governance, and as a medium within Hyperliquid’s trading architecture. While higher gas consumption may increase token activity, its effect on HYPE’s price will depend on real user adoption and volume on the new network.
Economic incentives and upcoming upgrades
Elysium will introduce a revenue-sharing model to encourage developer adoption. According to the announced structure, 25% of network sequencer revenue will go to builders generating on-chain activity, another 25% to operational expenses, and the remaining 50% will be used to buy KNTQ, Kinetiq’s native token. These acquired KNTQ tokens will be directed to the Hyperliquid Assistance Fund.
| Revenue Allocation | Purpose |
|---|---|
| 25% | Builders (developers) |
| 25% | Operations |
| 50% | Purchase KNTQ for Assistance Fund |
This structure complements Hyperliquid’s ongoing token buyback programs and aims to foster long-term sustainability for the ecosystem. The initial Elysium deployment is only the first phase, with Kinetiq planning a substantial upgrade around four weeks later. This upgrade will enable smart contracts to access HyperCore’s market data and directly submit trading orders, potentially supporting applications such as automated market making and sophisticated trading algorithms.
The platform will also introduce infrastructure in Tokyo to improve data access for HyperCore users, reflecting Hyperliquid’s expansion into global markets.
Institutional engagement and growth prospects
Hyperliquid, known for its spot and perpetual futures trading, has drawn increased interest from institutional participants. Plans are underway to launch regulated futures infrastructure in the United States, signaling the company’s intention to operate under formal regulatory frameworks. Intercontinental Exchange, the operator of the New York Stock Exchange, has reportedly shown interest in Hyperliquid’s trading developments.
Meanwhile, Hyperliquid’s liquid-staking ecosystem continues to grow, with teams expanding applications related to staking HYPE. These ongoing developments demonstrate the network’s strategy to provide versatile financial products while reinforcing its infrastructure.
