Kinetiq Unveils Elysium L2 With HYPE Gas for Hyperliquid

Kinetiq has announced the launch of Elysium, a new layer 2 network designed to enhance the performance of the Hyperliquid ecosystem, with the HYPE token serving as its native gas for transaction fees. The unveiling, which occurred on August 24, 2026, positions Elysium as a high-speed Ethereum-compatible execution environment aimed at overcoming performance limitations within the existing HyperEVM infrastructure.

According to Kinetiq, Elysium is engineered to deliver faster block times and higher throughput, addressing barriers like the dual-block architecture, limited capacity, and high transaction costs currently associated with HyperEVM. The company states that during periods of congestion, simple swaps on HyperEVM can cost as much as $20, making it difficult to scale for applications requiring rapid execution. Elysium aims to solve this by providing a tightly integrated connection to HyperCore, Hyperliquid's native orderbook and trading infrastructure.

The project focuses on bolstering spot market activity and enabling new decentralized finance applications. A key component is the introduction of proprietary automated market makers, or PropAMMs, which will leverage enhanced...