Valantis Swaps StHYPE for Liquidity Edge in Hyperliquid’s Staking War

Valantis, a decentralized exchange (DEX) protocol, has acquired Staked Hype (stHYPE), the second-largest liquid staking token (LST) on Hyperliquid, in a strategic move to strengthen its position within the HyperEVM ecosystem [1]. The acquisition, which does not disclose financial terms, transfers the operations, development, and scaling of stHYPE to Valantis Labs, the entity behind the DEX platform. Addison Spiegel, founder of Thunderhead, the team that originally launched stHYPE, will serve as an advisor to Valantis post-transaction [2].

StHYPE, which debuted as the first LST on HyperEVM, currently holds approximately $180 million in total value locked (TVL), according to its official website [1]. The token now trails behind Kinetiq’s kHYPE, its primary competitor in the Hyperliquid liquid staking market, which has over $1.3 billion in TVL. Valantis CEO Deven Matthews emphasized that the acquisition aims to enhance stHYPE’s liquidity and unlock new yield opportunities for investors, addressing key pain points within the token’s current structure [1].

The Hyperliquid DeFi market, which now exceeds $2.7 billion in TVL, has positioned itself as one of the fastest-growing markets in the crypto space. Liquid staking, a core component of the Hyperliquid ecosystem, accounts for more than half of the network’s DeFi TVL [2]. HyperEVM, the platform’s layer-2 solution launched in February, has expanded to nearly 100 active protocols and surpassed $2 billion in TVL [1]. The integration of stHYPE into Valantis’ DEX and HyperCore platforms is expected to further bolster liquidity and user adoption.

Valantis already operates one of the largest DEX liquidity pools for Hyperliquid’s liquid-staked assets, hosting both stHYPE and kHYPE. With this acquisition, Valantis becomes the issuer of stHYPE while continuing to support competing LSTs [1]. The move aligns with a broader trend of consolidation in the crypto space, with larger firms acquiring smaller, niche projects to expand their offerings. This includes recent acquisitions by major players such as Stripe and Ripple.

Despite its reduced market share compared to kHYPE, stHYPE remains a significant player in the Hyperliquid liquid staking market, which is valued at around $1.5 billion [1]. Valantis has stated that it plans to enhance stHYPE’s technical edge by optimizing liquidity and expanding integration with its existing infrastructure. Matthews emphasized that increased competition in the LST space is beneficial for both end-users and the broader Hyperliquid ecosystem. He noted that rivals can differentiate themselves through features such as transaction fee discounts and emission rewards.

The acquisition underscores the importance of liquidity in the success of digital assets. Valantis’ DEX pools for stHYPE and hHYPE have attracted nearly $70 million in TVL and facilitated over $500 million in trading volume to date [2]. As Hyperliquid continues its rapid growth, the move by Valantis reflects a broader push to consolidate and optimize the platform’s staking infrastructure in a competitive DeFi landscape.

Source: [1] Valantis buys sthype issuer, Hyperliquid staking competition heats up (https://www.dlnews.com/articles/defi/valantis-buys-sthype-issuer-hyperliquid-staking-competition-heat-up/) [2] Valantis Acquires stHYPE, Expanding Liquid Staking Reach on Hyperliquid (https://www.coindesk.com/business/2025/08/19/valantis-acquires-sthype-expanding-liquid-staking-reach-on-hyperliquid)