Kinetiq Unveils Elysium L2 Network to Expand Hyperliquid Ecosystem

The protocol claims Elysium will deliver performance improvements orders of magnitude beyond existing HyperEVM limits, though the project has yet to release technical benchmarks, audited code, or a definitive mainnet launch date. Kinetiq intends for the network to serve as an Ethereum-compatible execution environment, bridging the gap between proprietary automated market makers and Hyperliquid’s core order-book infrastructure. By modifying the L1Read precompile, the team plans to grant applications deeper access to real-time trading data, such as advanced order-book metrics, to assist developers with pricing and hedging strategies.

Financial incentives for the network are tied to a sequencer fee distribution model. Half of all collected fees will fund the open-market purchase and permanent burning of KNTQ tokens, directly linking the asset’s utility to network activity. The remaining proceeds are split equally, with 25% allocated to application developers for incentives or rebates, and 25% directed to the Kinetiq treasury. While the project envisions a seamless pipeline from initial token launches to full-scale perpetual markets via HIP-3, the practical efficacy of these mechanisms depends entirely on future network adoption and the eventual disclosure of technical specifications.