Find out how to stake $HYPE tokens, secure the network, and earn rewards!
Hyperliquid Staking
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Rewards
APY
2.15% 2.26%
Details
Rating
5/10
Reward fee
0-5%
Risk
Medium
Unstake period
8
Hyperliquid’s $HYPE token plays a central role in network security and governance. By staking $HYPE tokens, users help secure the network. They also participate in critical decisions regarding protocol upgrades and liquidity management.
The staking process on Hyperliquid is designed to be user-friendly. There’s no minimum requirement for the amount of $HYPE tokens you must stake. Rewards for staking accrue every minute and are distributed daily with an automatic compounding feature. These rewards are sourced from future token emissions and tend to vary only slightly among different staking validators (2.15 - 2.26% annual percentage return).
Hyperliquid implemented a structured unstaking process. After a user initiates unstaking from a validator, there is a mandatory 1-day lockup period. During this period, the tokens remain inaccessible. This initial phase is designed to ensure that validators continue to uphold the network's stability. Once the lockup period concludes, the tokens are released into the staking account. However, transferring these tokens from the staking account to the spot account involves an additional 7-day queue. This delay is a safeguard against potential consensus attacks, keeping the tokens locked during the entire period. The full process, from initiating unstaking to having the tokens available in the spot wallet usually takes up to 8 days.
Hyperliquid introduced staking tiers in March, 2025. Tiers are determined by the amount of HYPE staked. The initial benefit of staking tiers are reduced trading fees. There are 6 tiers in total, and they range from "Wood" (requiring over 10 HYPE for a 5% discount) to "Diamond" (requiring over 500,000 HYPE for a 40% discount). Tier updates are expected to go live on or after April 30, 2025, to give users time to adjust.
Hyperliquid’s structure exemplifies a balanced approach to network security and user flexibility.
Pros & Cons
Why is it worth it?
Governance Rights
By staking $HYPE tokens, you get the power to vote on key decisions like protocol upgrades and fee changes. This means you have a say in how the platform develops.
No Minimum Staking Amount
You don't need a big investment to start staking on Hyperliquid, making it accessible to users with smaller budgets. This flexibility is great for beginners or those testing the waters in crypto.
Ethereum Virtual Machine Compatible
Token Buybacks
Hyperliquid uses a portion of its trading fees to buy back $HYPE tokens, which reduces the total number of tokens in circulation. This can increase the token's value over time, directly benefiting you as a holder or staker.
Staking Tiers and Lower Fees
Staking HYPE reduces trading fees with tiered discounts based on the amount staked. The more HYPE a user stakes, the higher their tier and the greater their trading fee discount, ranging from 5% to 40%. This incentivizes users to stake more tokens, lowering their overall trading costs while supporting the ecosystem.
Risks to consider
Longer Withdrawal Waiting Period
When unstaking your $HYPE tokens, you’ll need to wait a total of 8 days before you can fully access your funds. This extended process can be frustrating if you need quick access to your funds, whether due to a sudden market downturn or a new investment opportunity.
Lower Staking Rewards
Hyperliquid offers an annual yield of about 2.3%, which is on the lower end of the spectrum compared to other options. For instance, staking Ethereum gives around 3.5%, or Solana offers between 6-8%. While Hyperliquid’s conservative rate might appeal to risk-averse users, it may not be right for you if you seek higher returns.
Validator Centralization
The Hyperliquid network relies on just 16 validators to operate, raising concerns about centralization. With so few validators, there’s a higher risk of collusion to manipulate transactions or influence key decisions on the network.
Token Price Volatility
Like most cryptocurrencies, $HYPE’s price can swing wildly. Even if you earn a 2.3% annual return from staking, a sudden drop in $HYPE’s value could easily wipe out your gains. This makes staking risky if you’re looking for stable, predictable returns. If the market takes a downturn, the combination of low rewards and high volatility could result in losses rather than profits.