xRAM Liquid Staking TokenPrice

(HYPERRAM)

xRAM is a non-transferable token representing RAM held in escrow. It is primarily used within the protocol for voting on emissions and earning fees. In contrast, hyperRAM is the Liquid Staking Token (LST) version of xRAM. Unlike xRAM, hyperRAM is transferable and tradeable on the open market. It is designed to auto-compound rewards, meaning holders do not need to manually vote or claim incentives, as the protocol manages these actions to increase the token's underlying value.

The protocol is a key component of the Hyperliquid (HyperEVM) network. hyperRAM is specifically engineered for this ecosystem to provide deep liquidity and efficient tokenomics for the RAM token. By utilizing the HyperEVM infrastructure, hyperRAM allows users to engage with the network's liquidity layer while benefiting from a liquid staking model that maintains asset utility across the ecosystem.

Instead of distributing new tokens to wallets, hyperRAM utilizes an increasing exchange ratio. As the protocol collects trading fees and vote incentives, these assets are used to buy back xRAM and add it to the hyperRAM pool. Over time, this causes the value of 1 hyperRAM to represent a larger amount of xRAM. This automated strategy ensures that holders capture yield from protocol activities without the need for manual intervention or constant monitoring.

This is a 'Proof of Commitment' mechanic designed to protect the ecosystem from short-term mercenary capital. When a user converts RAM to xRAM, 50% of the RAM is permanently removed from circulation. This reduction in total supply benefits long-term participants by increasing the scarcity of the token and ensuring that those earning protocol rewards are aligned with the long-term stability and growth of the network.

Holders have two main options for exiting. The first is direct redemption, where xRAM is converted back to RAM at a 1:0.5 ratio, effectively realizing the 50% exit fee. The second method is a market sale, where users can trade their hyperRAM for other assets on supported exchanges. While market prices typically reflect the 50% exit penalty, this option provides immediate liquidity compared to the traditional redemption process.

Minting is periodically paused to ensure accurate reward distribution and prevent 'reward sniping' during epoch transitions. Specifically, there is a one-hour 'no-mint' window before each weekly epoch flip and a 24-hour buyback period following the flip. These measures ensure that rewards are distributed fairly to long-term holders and that the protocol's automated buyback mechanisms function correctly without being exploited by temporary participants.