Kintsu Launches sHYPE on Hyperliquid, Introducing Game-Theoretic Governance to Liquid Staking

Kintsu, a liquid staking protocol backed by prominent investors including Castle Island Ventures and Brevan Howard Digital, has expanded to Hyperliquid with the launch of sHYPE. The protocol aims to tackle fragmentation in DeFi through decentralized validator curation and composable staking tokens.

The innovation lies in its governance model, which operates like a competitive game. Delegates stake governance tokens and campaign for delegations by curating high-performing validator teams. Validators compete for stake, delegates vie for reputation, and the system thrives on transparent performance metrics. This dynamic creates a feedback loop where validator performance drives yield, fostering a more resilient and composable liquid staking token for the Hyperliquid ecosystem.

"Liquid staking at scale must be transparent and programmatically controlled," the team emphasized. The two-year R&D effort culminates in what Kintsu describes as a necessary evolution beyond opaque, discretionary governance models.