Is stHYPE Safe?
Risk Grade: B- (30/100)
stHYPE is rated as moderate risk — some novel mechanisms, generally well-understood.
stHYPE was an early mover in Hyperliquid liquid staking but has lost significant ground to kHYPE. The Valantis acquisition brings new strategic direction but introduces governance uncertainty. Sound technical foundation with open-source audited contracts, but competitive headwinds and ecosystem concentration create meaningful risk. Moderate risk, uncertain trajectory.
stHYPE is a liquid staking token for Hyperliquid's HYPE token. It was the first LST on HyperEVM but has since been surpassed by kHYPE. In August 2025, stHYPE was acquired by Valantis DEX and is being transformed into a modular liquid staking platform. Users stake HYPE and receive stHYPE that can be used across Hyperliquid DeFi.
TVL
$146M
Mechanisms
5
Interactions
4
Value Grade
D
Key Risks for stHYPE Users
stHYPE has been losing market share to competitors — it dropped from $500M to ~$130M TVL, raising questions about long-term viability
The Valantis acquisition means a DEX company now controls your staking provider, which may create conflicts of interest
Your entire investment is tied to the Hyperliquid ecosystem — if HYPE or the chain has problems, stHYPE is directly affected
Top Risk Factors
- •Acquisition by Valantis DEX introduces corporate governance risk and strategic pivot uncertainty for stHYPE holders
- •Market share erosion — stHYPE lost its #1 position to kHYPE, declining from $500M to ~$130M TVL, signaling competitive weakness
- •Hyperliquid ecosystem concentration — stHYPE's value is entirely dependent on HYPE token price and Hyperliquid chain health
Risk Score Breakdown
stHYPE's highest risk area is Scale Exposure (5/10). Here's how each dimension contributes to the overall 30/100 score:
Read the Full stHYPE Risk Report
This protocol has 2 collapse scenarios. 1 high-severity interaction risks identified. See the full mechanism classification, interaction matrix, and deep-dive recommendations.
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