Kinetiq, which controls roughly 82.5% of Hyperliquid’s liquid staking market and holds about $1.26 billion in total value locked, has unveiled Elysium, a Hyperliquid-focused Layer 2 that will use HYPE as its gas token from launch. The Ethereum-compatible network is meant to ease HyperEVM capacity limits—where simple swaps have cost as much as $20 in busy periods—and tighten ties to HyperCore, including a modified L1Read precompile that exposes deeper trading data for PropAMMs and other apps. Planned use cases span spot markets, PropAMMs, token launches and HIP-3 perpetual deployments. Sequencer fees will split 50% to open-market KNTQ buybacks and permanent burns via the Hyperliquid Assistance Fund, 25% to builders and 25% to Kinetiq’s treasury. Specs, audits, partners and a mainnet date remain undisclosed even as the launch is called imminent; KNTQ rose about 30% after the announcement.