Kinetiq has launched Elysium, a high-performance Layer 2 blockchain designed to bring faster trading, automated market making and decentralized financial applications to the Hyperliquid ecosystem.
The network, which opened its public mainnet on November 9, is built using the Arbitrum Platform and infrastructure operated by Conduit. It settles transactions to HyperEVM, Hyperliquid’s smart-contract environment, while allowing developers to run computationally intensive applications separately from HyperCore, the exchange’s core trading engine.
The launch comes as blockchain developers increasingly turn to specialized execution environments to support professional trading systems that require lower latency, deeper liquidity and more sophisticated financial infrastructure.
Elysium Targets 600x HyperEVM’s Throughput
Elysium targets block production every 100 milliseconds and execution capacity of 300 million gas units per second.
Kinetiq says that represents 600 times the throughput of HyperEVM’s large-block configuration. However, the comparison measures theoretical gas-processing capacity rather than actual transactions completed. The 300 Mgas/s target was validated in pre-launch load testing, according to the company’s technical documentation, and remains to be demonstrated under sustained mainnet demand.
HyperEVM currently uses a dual-block architecture that balances smart-contract execution with HyperCore’s requirements.
Small blocks process 3 million gas units every second, while larger blocks carry 30 million gas units approximately once every minute. The design helps preserve HyperCore’s performance but limits the capacity available for sustained high-frequency activity.
Elysium attempts to remove that bottleneck without requiring applications to leave Hyperliquid’s financial ecosystem.
“Hyperliquid has proven that onchain markets can compete with the best venues in the world,” said Justin Greenberg, CTO and co-founder of Kinetiq.
“Elysium gives builders the throughput and capacity to put programmable execution right next to that liquidity, without leaving the ecosystem or holding a new token. Every application that succeeds on Elysium makes the broader Hyperliquid economy significantly larger.”
The network supports high-frequency trading systems, professional market-making automated market makers, spot exchanges, lending, derivatives and token-launch infrastructure.
Arbitrum Technology Connects Elysium to Hyperliquid Liquidity
Rather than building an entirely new blockchain architecture, Kinetiq developed Elysium using Arbitrum Orbit, Nitro and ArbOS.
Conduit operates the network infrastructure, while its Ethereum Virtual Machine compatibility allows developers to deploy Solidity and Vyper smart contracts using existing tools, including Foundry, Hardhat and ethers. This reduces the technical changes required to migrate Ethereum-compatible applications.
HYPE serves as the native token for transaction fees.
Users can transfer HYPE between HyperEVM and Elysium on a one-to-one basis without introducing a separate wrapped gas token. ERC-20 assets can also move between the networks, while tokens launched on Elysium have a pathway toward HyperCore spot-market listings.
The arrangement is intended to limit liquidity fragmentation, a persistent challenge in decentralized finance where users often need to move funds between separate networks and trading venues.
“Hyperliquid has established itself as the home of perpetual markets. With Elysium, that vision expands towards becoming the home of onchain finance,” said Andrew Huang, CEO and founder of Conduit.
Kinetiq Allocates 50% of Revenue to KNTQ Buybacks
Elysium introduces a revenue-sharing structure that ties network activity to Kinetiq’s token economy and application developers.
Kinetiq has committed 50% of sequencer revenue to purchasing KNTQ tokens on the open market, with purchased tokens subsequently burned through Hyperliquid’s Assistance Fund. Another 25% is reserved for applications generating network activity, while the remaining 25% supports treasury operations.
Developers can direct their revenue allocation toward liquidity incentives, trading rebates and other user-acquisition programs.
Unlike conventional ecosystem grants, which typically provide upfront funding, the model creates a recurring financial incentive linked to applications’ consumption of network capacity.
However, the economic benefits will depend on whether Elysium attracts enough activity to generate meaningful sequencer revenue.
Kinetiq also expects the network to strengthen Hyperliquid’s broader economy. Additional USDC liquidity could expand HyperEVM’s stablecoin reserves, while arbitrage between Elysium markets and HyperCore order books could generate further trading volume and fees. These remain prospective benefits rather than demonstrated outcomes.
Direct HyperCore Trading Integration Is Still Ahead
One of Elysium’s most significant proposed capabilities is not available at launch.
Kinetiq plans to introduce direct access to HyperCore order books, prices, balances and trading positions through an ArbOS upgrade expected approximately four weeks after mainnet activation. Smart contracts will eventually be able to retrieve market data without relying on external oracle feeds.
The planned integration would also allow contracts to submit orders through revocable, trade-only agents connected to users’ HyperCore accounts.
Kinetiq targets approximately 100 milliseconds from an order instruction to placement on HyperCore. That could support automated market makers that continuously adjust quotes, lending protocols that react to market prices and investment vaults that hedge positions directly through the exchange.
However, faster execution introduces technical and operational trade-offs.
Elysium launches with a single sequencer, permissioned validation and one Conduit-operated data-availability server. The network provides a fallback that posts transaction data to HyperEVM, but a broader data-availability committee and permissionless fraud proofs remain future upgrades. Standard optimistic withdrawals also carry a challenge period of approximately 5.5 days.
Competition Intensifies Among Specialized Blockchain Networks
Elysium enters a market where financial platforms are increasingly deploying purpose-built blockchain infrastructure.
Robinhood launched the public mainnet of Robinhood Chain on July 1, using the Arbitrum Platform to support tokenized assets, decentralized finance and trading applications. The network includes integrations with Uniswap, Alchemy and other infrastructure providers, demonstrating how established financial platforms are adopting customizable blockchain environments.
Competition is also intensifying among decentralized perpetual-futures exchanges.
Hyperliquid processed $1.82 billion in perpetual-futures trading volume during the 24 hours ending November 8, accounting for 30% of activity across exchanges tracked by Castle Labs. Lighter followed with $1.23 billion, while GRVT and Variational recorded $571.3 million and $564.3 million, respectively.
Hyperliquid nevertheless maintained a substantial lead in outstanding derivatives positions.
Its $7.31 billion in open interest represented 57% of the tracked decentralized perpetual-futures market, ahead of Aster’s $1.38 billion and Variational’s $841.7 million. The figures show Hyperliquid’s established liquidity position but also highlight growing competition for trading activity.
That existing liquidity could provide Elysium an advantage over networks attempting to establish trading activity from scratch.
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