Valantis acquires stHYPE: $180M of TVL enter the orbit of the DEX on Hyperliquid

180 million dollars of TVL move to Hyperliquid: Valantis has acquired stHYPE, the second largest liquid staking token (LST) in the ecosystem. The operation strengthens the DEX’s position in liquid staking and, at the same time, paves the way for broader native liquidity to support trading and yield strategies. In this context, it should be noted that this is a significant step for market balances.

For quicker reference, see the key data below.

According to the data collected by DeFiLlama (snapshot updated as of August 19, 2025) and verified by market notes, stHYPE shows a TVL around $180M. Analysts from our research desk observe that similar LST-DEX integration operations have historically improved market depth and reduced inefficiencies among related pools.

Furthermore, based on sector reports and on-chain monitoring, we believe that the entry of a technical advisor from Thunderhead will favor operational continuity and the transfer of know-how.

Key Data

• TVL of stHYPE: ~180M$
• Pool LST Valantis (stHYPE, hHYPE): overall ~70M$ of TVL
• Volumes on LST pairs: over $500M in trades (journalistic source and on‑chain data)
• TVL of Hyperliquid: ~2.26B$, with liquid staking contributing more than half of the total

Operation: development at Valantis Labs and external advisor from Thunderhead

With the acquisition, the development and management activities of stHYPE will be taken over by Valantis Labs. Additionally, Addison Spiegel, founder of Thunderhead – the entity behind stHYPE – joins as an external advisor, to ensure the transfer of technical know-how and alignment with the operational roadmap.

The economic conditions of the agreement have not been disclosed; a detail that, it must be said, is not unusual in operations of this type.

Impact on DEX liquidity

The introduction of a native LST in the DEX promotes better liquidity aggregation and increases the market depth on pairs that include HYPE/stHYPE. An interesting aspect is the potential reduction of inefficiencies between related pools.

Expected effects

• Reduction of slippage on LST pairs, aided by the growth of pools and a higher order density.
• Targeted incentives for liquidity providers on stHYPE and related assets, with a view to balancing liquidity.
• Interoperability between the DEX, the staking mechanism, and the lending/collateral systems, also cross-module.
• New liquidity pathways between LST and stablecoin, with potential reduction of market fragmentation.

stHYPE in the ecosystem: synergies with the DEX and HyperCore

Valantis aims to integrate stHYPE both in the DEX and in HyperCore, expanding the liquidity network on Hyperliquid. The already operational LST pools (stHYPE and hHYPE) have accumulated ~70M$ of TVL and over 500M$ of volume; numbers that, in this context, constitute a concrete base to accelerate market-making on the LST.

Technical Integration

• Dedicated pools for LST and stablecoin, with curves optimized for closely correlated assets.
• Aggregation tools for a smooth transition between staking, trading, and collateral functions, without excessive friction.
• Bridge/wrapper and modular smart contracts, useful for using LSTs as collateral within DeFi protocols.

Effects on the Hyperliquid ecosystem and on DeFi

According to available sources, liquid staking accounts for over half of the TVL of Hyperliquid (~2.26B$). The Valantis operation consolidates this setup: more “core” LSTs can promote greater composability (for collateral, leverage, and yield strategies) and, at the same time, a more pronounced concentration of the TVL among a few issuers. It must be said that it is a delicate balance.

Implications for protocols and users

• Protocols: simplified integration of LST as collateral and development of markets for derivatives and hedging strategies.
• Users: access to more LST pairs, greater market depth, and new composable yield opportunities.

Risks and opportunities

• Risks: excessive concentration of power in a few LST, dependence on third-party infrastructures, risks from smart contracts, and possible dynamics of governance capture.
• Opportunities: benefits in market efficiency, emergence of new products (LST indices, contracts for difference on LST, delta-hedged vaults) and reduction of liquidity fragmentation.

The safety of the ecosystem will largely depend on rigorous auditing, transparency in policy di emissione, and careful risk management at the protocol level. In this sense, governance will play a significant role.

Context: HyperEVM and the growing role of liquid staking

HyperEVM, launched in February of this year (February 2025), has quickly attracted numerous active protocols — nearly 100 active protocols as of August 19, 2025, according to market reconstructions — accelerating the adoption of LSTs as true infrastructure assets for the network. This advancement fits into the cross-chain trend, where LSTs are transitioning from a simple staking tool to system collateral.

What to watch in the coming months

• Liquidity migration towards stHYPE pools and the consequent effects on spread and slippage.
• Integrations in HyperCore and the support of LST as collateral in lending protocols.
• Evolution of the governance of stHYPE and the reward policies.
• Possible development of derivatives and tools dedicated to risk management on LST on Hyperliquid.

Conclusion

The acquisition of stHYPE by Valantis could reshape the balances of liquid staking on Hyperliquid, strengthening on-chain liquidity and composability in the DeFi ecosystem. The sustainability of this concentration will ultimately depend on the quality of technical execution and the governance of the LST.

Transparency on data and sources

• Dashboard TVL: DeFiLlama (general data on TVL and LST shares; see Hyperliquid L1 page).
• Report and analysis: Messari – Liquid staking (report) (context analysis on LST and market impacts).
• In-depth on staking: Chainalysis – What is Crypto Staking? (summary of mechanisms, risks, and relevant metrics).
• Ecosystem: official site of Hyperliquid for documentation and network resources.