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How sHYPE Works

This page explains the technical mechanics behind HyperAMM's liquid staking system.

Mint & Burn​

Minting sHYPE​

When you stake HYPE:

  1. HYPE (or WHYPE) is deposited into the StakingManager contract
  2. sHYPE is minted at the current exchange rate
  3. The StakingManager delegates the HYPE to a Hyperliquid validator via Core

Exchange rate: sHYPE received = HYPE deposited / (total HYPE managed / total sHYPE supply)

Unstaking sHYPE​

When you unstake:

  1. sHYPE is locked (transferred from your wallet to the StakingManager contract)
  2. An unstake request enters the FIFO withdrawal queue
  3. The keeper undelegates HYPE from the validator and bridges back to EVM
  4. At claim time, the locked sHYPE is burned and you receive HYPE (minus fee)
info

sHYPE is locked at unstake time but only burned at claim time. Since locked sHYPE is still counted in totalSupply, the exchange rate is not affected by pending unstake requests.

Exchange Rate​

The sHYPE:HYPE exchange rate reflects the total value of staked HYPE plus accrued rewards:

exchange rate = total HYPE managed / total sHYPE supply

As validator rewards accrue, the total HYPE managed increases while sHYPE supply stays constant (for existing holders) — so the exchange rate increases over time.

Validator Delegation​

  • The StakingManager delegates staked HYPE to a configured Hyperliquid validator
  • Validator migration is supported via a two-step process (prepare → execute) without exposing funds to the 7-day withdrawal queue
  • Delegation and undelegation happen via HyperCore precompiles

Fee Structure​

  • A protocol fee is applied at claim time (not at stake time)
  • The fee is calculated on the total claim amount (principal + accrued rewards)
  • Current fee rate: 0.1% (10 basis points)

Next Steps​