Valantis continues its growth trajectory by acquiring StakedHYPE, the second-largest liquid staking platform in the Hyperliquid ecosystem. The transaction amount remains undisclosed, but the impact is evident: StakedHYPE now falls under the management of Valantis Labs, with its founder, Addison Spiegel, joining as an advisor.
Valantis acquires StakedHYPE and its stHYPE
An operation with strategic implications, aiming to dominate the liquid staking sector, Valantis looks beyond just the acquisition of StakedHYPE. The consolidation move is to gain an edge in the critical DeFi sector.
With over $200 million in Total Value Locked (TVL), StakedHYPE is a major player on HyperEVM, following only Kinetiq. Valantis sees this as a strategic step to lead the liquid staking field.
Originally envisioned as a toolbox for modular DEX developers, StakedHYPE has shifted focus. The platform now creates its products, including a dedicated exchange for liquid staking tokens (LST) like stHYPE and kHYPE. Solely, these two tokens hold nearly $70 million in TVL and have generated over $500 million in total volume.
Towards total vertical integration
Ed Carvalho, Valantis‘s Co-founder and CTO, openly shares the company’s ambitious goal:
Integrating a liquid staking protocol with a DEX ensures the deepest liquidity and most efficient markets.
Valantis aims to transform staking HYPE into a robust market infrastructure, providing more liquid, accessible, and integrated products. The acquisition will facilitate more than staking, with HIP-3 potentially offering fee discounts for market makers and expanding usability within the Hyperliquid ecosystem, especially with HyperCore, the perps platform. The goal is to elevate stHYPE into an essential liquidity network rather than just a staking token.
A rapid deal supported by strong investors
Though formal negotiations began recently, the agreement has swiftly concluded. Financial details remain confidential in terms of cash, tokens, or equity. However, Valantis is backed by a robust network of investors such as Kraken Ventures, Figment Capital, and Robot Ventures, raising $7.5 million last year at a valuation of $40 million.
On the flip side, StakedHYPE‘s contrast is stark. The six-person team behind Thunderhead has been self-funded and profitable since its inception. While efficient, this model may not have sufficed against escalating competition in the liquid staking realm.
A consolidation reshaping the Hyperliquid ecosystem
This acquisition mirrors a broader trend: consolidation around liquid staking tokens, now pivotal in the DeFi arena. On Hyperliquid, where volumes and incentives surge, Valantis is banking on vertical integration to secure its position. An audacious yet potentially rewarding strategy, as liquidity control translates to market dominance.
