Unstaking (Converting flashHYPE back to HYPE)

Unstaking in HyperFlash is the process of redeeming your flashHYPE tokens for the underlying HYPE tokens (plus any accumulated rewards). The protocol is built to allow redemptions at any time, but there may be conditions depending on liquidity and network constraints:

• Standard Unbonding: HyperEVM is a Proof-of-Stake network, which means there’s an unbonding period of 7 days when withdrawing stake from validators. According to Hyperliquid’s rules, when you unstake HYPE from a validator, you might need to wait a certain number of days or blocks before those tokens become transferable (this period helps ensure security of the network). HyperFlash, being a liquid staking protocol, abstracts this by letting you hold flashHYPE, but when you actually go to redeem, the same rule applies. If the protocol doesn’t have enough idle HYPE liquid (unstaked) to instantly satisfy your request, you will enter an unbonding queue. You’ll burn your flashHYPE, and after the network-determined unbonding period, you’ll receive the corresponding HYPE. The exact wait time is determined by the HyperEVM network parameters for unstaking. HyperFlash will make this transparent to users (for example, the UI might show something like “Unstaking will be available after 7 days”).

• Instant Liquidity Mechanism: To improve user experience, HyperFlash maintains a small liquidity pool or buffer of HYPE that is not staked but reserved for redemptions. If so, users could unstake instantly as long as that pool has available HYPE. In practice, when you initiate unstake, HyperFlash will check if there is enough unbonded HYPE to fulfill it immediately. If yes, you get your HYPE back right away (a portion of the reserve is used, and flashHYPE is removed from circulation). If no (e.g., many users are unstaking at once or the pool is empty), then your request will trigger actual unstaking from validators and you’ll need to wait the unbonding period. This model is similar to how some liquid staking protocols allow instant withdrawals up to a limit. There is a 0.1% redemption fee.

• Process: To unstake, you will typically go to the HyperFlash app and use the “unstake” or “redeem” function. You specify how many flashHYPE you want to convert back. The contract will burn those flashHYPE tokens and initiate the return of your HYPE. If instant, you’ll receive HYPE in your wallet. If delayed, you might receive a receipt or simply be told the transaction will finalize after the cooldown. HyperFlash aims to automate this such that as soon as the unbonding is over, HYPE is sent to your wallet.

• Considerations: During any waiting period, your flashHYPE is already burned (so you stop accruing new rewards on that portion since it’s effectively not staked anymore after the request). Also note, because flashHYPE is freely tradable, if you prefer not to wait, you could potentially sell flashHYPE on a market to someone else.