Staked HYPEPrice

(STHYPE)

Staked HYPE (STHYPE) is a liquid staking derivative token representing staked HYPE tokens. Its primary function is to enable users to maintain liquidity of their assets while simultaneously earning staking rewards from their underlying HYPE tokens. This allows holders to participate in the HYPE ecosystem's staking benefits without locking up their capital, offering flexibility and utility.

When users stake their HYPE tokens through the protocol contract, they receive STHYPE tokens in return. The value of STHYPE against HYPE is designed to grow over time. This growth occurs as staking rewards accumulate from the underlying HYPE tokens, causing the exchange rate between STHYPE and HYPE to adjust upwards, reflecting the continuous accrual of these rewards.

No, STHYPE itself is not directly stakeable or mineable. This is because STHYPE already represents HYPE tokens that are actively staked within the protocol. By holding STHYPE, users automatically benefit from the staking rewards generated by the underlying HYPE tokens, eliminating the need for direct staking while providing a liquid asset.

STHYPE serves multiple important purposes in DeFi. It acts as a liquid representation of staked assets, offering flexibility to holders. It allows token holders to participate in the governance of the HYPE ecosystem. Furthermore, STHYPE facilitates broad DeFi integration, for example, by being utilized as collateral in lending protocols or by contributing to liquidity pools across various platforms. It can also be traded on exchanges.

STHYPE tokens are dynamically minted whenever users deposit their HYPE tokens into the staking protocol. The initial exchange rate was 1:1. Over time, this ratio adjusts as staking rewards accrue to the underlying staked HYPE, meaning the value of STHYPE progressively increases relative to HYPE, reflecting the embedded rewards. This model ensures that STHYPE continuously appreciates in value as staking rewards are earned.

Both stHYPE and wstHYPE accrue the same staking rewards from the underlying HYPE tokens. The key distinction lies in how they display and manage their balance. stHYPE is a rebasing token, meaning its token balance directly updates to reflect accrued rewards. In contrast, wstHYPE maintains a constant token amount, with its underlying value increasing over time due to accrued rewards. This fixed balance makes wstHYPE more suitable for seamless integration into a wider array of decentralized finance protocols without requiring rebalancing mechanisms.