Has Hyperliquid had its wealth effect yet? @0xOmnia: “You saw this on Ethereum a few years back. You saw this most recently on Solana, and it’s yet to happen on Hyperliquid... There’s 20 to 40 billion dollars of capital that is basically sitting on HyperCore, staked or unstaked, waiting to do something."

Every exchange that launched its own chain, from Binance with BSC to Coinbase with Base, kept the sequencer fees for itself. In this clip, Kinetiq’s co-founder explains why Elysium is built the other way around. On @Delphi_Digital, @0xOmnia says the rule from day one was that Elysium could never compete with @HyperliquidX. There are no perps and no orderbooks on it. It’s a fast general-purpose chain sitting right next to the deepest orderbooks onchain, which opens up what HyperEVM was never built to support. What that unlocks → Fully onchain options and prop AMMs that hedge directly into Hyperliquid’s liquidity. → Arbitrage between Elysium and HyperCore, which sends more volume back to the exchange. → Half of sequencer fees, priority fees included, buying back $KNTQ, while Hyperliquid gains flow it never had to build for. Elysium @Enter_Elysium is live now, and direct HyperCore access arrives in early December. My full breakdown is below.

Kinetiq is building the app economy around Hyperliquid. Elysium is Kinetiq’s new network for the apps that run alongside Hyperliquid’s exchange, targeting roughly 100 times the block space they get on HyperEVM today. Block space has been a key bottleneck on HyperEVM. Market makers pay gas on every quote update, so fee spikes mean fewer updates and wider spreads. Few apps beyond staking and lending have taken off. More room should let market makers keep prices fresh without fees eating into their margins. A maker selling downside protection through an options app on Elysium could then hedge with perps on Hyperliquid. Each of those trades pays the exchange a fee. HIP-3 let outside teams launch their own markets on Hyperliquid. Elysium could do the same for apps.

Our new report “Kinetiq: Building the Hyperliquid Economy” is live! Trading on Hyperliquid has grown faster than the block space its apps run on. Kinetiq is building Elysium to give those apps 100 times the capacity. Read the report here.

12 hours into @Enter_Elysium mainnet so far: > ~$90m+ in vol (~90% of HyperEVM) > 50-100ms avg block times > ~9m tx's > 145k+ unique accounts > 750+ TPS at peak > ~$50m TVL (HYPE, KNTQ, USDC, etc) > practically zero gas price volatility > hundreds of teams shipping e/acc

what if on: > robinhood chain you could access robinhood options/spot liquidity > binance chain you could access binance perps/spot liquidity > base chain you could access coinbase perp/spot liquidity the above is fundamentally, technically, and legally impossible, therefore: On Elysium, being built on top of Hyperliquid, fixes this entirely

what really sets elysium apart from every other l2 is native hypercore access through precompiles hevm has them too but slow blocks, top-of-book-only reads and delayed order writes with no execution guarantee meant they never got used to their full potential. papertrade is one of the few protocols that actually built its core around them on elysium a contract will be able to read live hypercore state every single hypercore block. full-depth orderbooks, oracle, mark and spot prices, and the balances and positions of any account on hl. it will also be able to send orders to the hypercore books in ~100ms while users keep custody of their funds so while everyone is fighting over what the next cashcat on elysium will be i think the thing worth watching is what actually makes this chain different: composability with hypercore none of this is live yet. it ships in an upgrade expected in about four weeks. when it does i hope to see serious builders put it to work. the design space is huge and could give us genuinely new defi/perps primitives i have a few fun ideas in mind, will talk about them later. until then let the tourists leave and let's wait patiently for the precompiles

congrats to our friends at @Enter_Elysium! any ecosystem looking to scale will need layered architecture, and I'm very happy to see the @Kinetiq_xyz team bring the @arbitrum stack to the hyperliquid eco. onwards 🫡 arbitrum everywhere hyperliquid

Hyperliquid is the only chain whose L2 can use its order book. That L2 is now live. Elysium has a luxury no other L2 has. The deepest on-chain order book is composable, and its apps can build on it directly. Hyperliquid made ~$680M over the past 12 months, nearly all of it from trading fees. But spot volume is down more than 80% from the peak, and DeFi on Hyperliquid is down ~65%. While the order book has grown more diverse, every other product around it has lagged. Elysium is where the rest can be built. Would love to see innovation in how Hyperliquid's product (liquidity) gets integrated into DeFi.

If you are a team with a token on Elysium, reach out so we can get you set up with a team tag on @fomo - you'll be able to directly reach your holders via push notifications each time you post a thesis.

Elysium just went live on mainnet. One of its key offerings is enabling the Hyperliquid ecosystem to capture more of the general-purpose activity (DeFi apps, meme coins, onchain spot, tokenised stocks) that leaks to Robinhood, Solana, and Base. The leak runs both ways. Those chains dominate spot and meme coin trading, but almost all of their perps volume goes to Hyperliquid. Elysium, from @kinetiq_xyz, is built so no activity has to leave the Hyperliquid ecosystem. “How do you create an environment that basically doesn’t leak value to the other side? This is what Elysium is.” (@0xOmnia, founder of Kinetiq and Elysium) How it works: Elysium is an @arbitrum Orbit Chain that settles to HyperEVM and uses $HYPE as gas, and it: ✦ Taps into Hyperliquid’s order books natively (coming soon). ✦ Gives you a fast, cheap place for everything perps can’t cover: spot, meme coins, tokenised stocks, apps. ✦ 50% of Sequencer fees go to buying back $KNTQ, 25% to the apps that use the blockspace, and 25% to Kinetiq's treasury. It essentially enables DeFi at low and high frequency, automated trading strategies, and consumer apps. In other words, anything that benefits from sitting next to the largest onchain source of perps liquidity. Additionally, it helps Hyperliquid attract more flow. For example, propAMMs on Elysium can hedge on Hyperliquid. Also, as some tokens grow on Elysium, they would end up listed on HyperCore too, while being traded on AMMs.

@Enter_Elysium mainnet has been public only for 3 hours since then: - $20M+ in DEX volume - 800K transactions, peaking at 150+ TPS - 44K wallets active, 29K transacting on Elysium for the first time - 4,600+ tokens launched, one every 2 seconds