Benefits of Staking (flashHYPE vs Direct Staking)

By staking HYPE through HyperFlash and holding flashHYPE, users enjoy several benefits:

• Liquidity: Unlike direct staking (which might lock your HYPE for an unbonding period), flashHYPE lets you maintain liquidity. You can sell or transfer flashHYPE at any time without waiting for an unstaking cooldown. This provides flexibility if you need to access the value of your staked tokens or rebalance your portfolio.

• Simplicity: HyperFlash simplifies the staking process. There’s no need to research or manage multiple stake accounts. You stake in one click and the protocol handles delegation behind the scenes. The user experience is straightforward – stake and earn, with no complex setup.

• Auto-Compounding Rewards: Because of the non-rebase/auto-distribution mechanism, your staking rewards (including MEV earnings) compound automatically. You don’t have to manually restake rewards – they are continuously added to your staked principal. Over time, this compounding can significantly boost your returns compared to manual staking where rewards might sit idle until restaked.

• Enhanced Yield via MEV: FlashHYPE holders earn not only the base network rewards but also MEV revenue extracted by the validators. This can substantially increase the annual percentage yield (APY). The exact boost will vary based on network activity and MEV opportunities, but conceptually it’s similar to how JitoSOL holders on Solana get a higher yield than standard SOL stakers due to shared MEV profits. HyperFlash’s aligned MEV strategy means stakers benefit from profitable activities like arbitrage, instead of that value going exclusively to arbitrage bots or validators.

• Earn points for being early: Earn points for staking HYPE with HyperFlash before the MEV mechanisms are live. This adds to the already high yield of flashHYPE staking.

• Participate in DeFi: As an ERC-20 token, flashHYPE can be integrated into the broader DeFi ecosystem on Hyperliquid. You can use flashHYPE as collateral in lending protocols, provide liquidity in DEX pools, or partake in yield farming strategies, all while still accruing staking rewards. This “stake once, earn twice” capability (staking rewards + DeFi yield) can amplify the utility of HYPE in the ecosystem. A strong example of this dynamic is how $7B of stETH (Lido’s staked ETH) is widely used across Ethereum DeFi, greatly exceeding the usage of typical collateral like stablecoins.