> For the complete documentation index, see [llms.txt](https://ascendlaunch.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://ascendlaunch.gitbook.io/docs/hype-staking.md).

# HYPE Staking

## Turning staking yield into ecosystem exposure

Users deposit HYPE through Ascend. Under the proposed model, the deposited HYPE is converted into kHYPE, Kinetiq’s liquid staking token.

kHYPE represents a staked HYPE position that accrues staking rewards. These rewards are reflected in kHYPE’s value relative to HYPE rather than through a continually increasing token balance. [Kinetiq](https://docs.kinetiq.xyz/)

Ascend directs the staking yield generated by users' kHYPE positions toward purchases of qualifying ecosystem tokens. These purchases are the sole source of ecosystem-token distributions to stakers. The purchased tokens are distributed to stakers in proportion to their eligible HYPE stake.

Yield available for purchases reflects applicable underlying staking charges and execution costs.

**HYPE deposit → kHYPE position → staking yield → ecosystem-token purchases → staker distributions**

Under the proposed model, ecosystem token purchases for staker distributions are funded exclusively by users’ staking yield, not by deposited principal or protocol fees. The model is designed to preserve underlying HYPE exposure, but does not eliminate investment or protocol risk.

## Four distinct reward streams

| **What stakers receive** | **What funds it**                                                               | **How it is distributed**                                                                                                                          |
| ------------------------ | ------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------- |
| **Ecosystem tokens**     | Users’ kHYPE staking yield only                                                 | In proportion to eligible HYPE staked. **NFT boosts do not apply.**                                                                                |
| **HYPE**                 | **10% of the HYPE purchased with net protocol revenue**                         | Based on eligible HYPE stake, with NFT boosts increasing a participant’s weighting within the reward pool.                                         |
| **USDC/RWA pairs**       | Referral fees                                                                   | Users who have a large amount of TVL staked with Ascend may be eligible for boosted referral fees under our trading profile and referrals program. |
| **KNTQ**                 | 20% of the KNTQ purchased with net protocol revenue (the Ascend points program) | Seasonal airdrops of liquid KNTQ based on trading-profile activity, including staked TVL. NFT boosts do not apply.                                 |

{% hint style="info" %}
NFTs do not increase a holder’s share of ecosystem-token distributions. Their boost applies only to the direct HYPE reward pool.
{% endhint %}

Staking yield used to purchase ecosystem tokens is not also retained as HYPE yield. Instead, that yield is converted into ecosystem token exposure.

{% hint style="info" %}
**Protocol-owned staking yield has a separate destination.** Ecosystem tokens purchased using that yield are burned rather than distributed to users. Ecosystem tokens purchased through the separate 30% ecosystem-buyback allocation are retained in Ascend’s treasury, with a small portion burned and treasury-held tokens used to help support eligible HyperCore listings. Neither source funds ecosystem-token airdrops to stakers.
{% endhint %}

## Withdrawals

Ascend’s intended experience has no fixed platform staking lockup, allowing users to request an exit at any time.

Immediate receipt of HYPE, however, depends on the withdrawal route and available liquidity. Kinetiq’s native kHYPE redemption process includes a withdrawal delay. Faster exits may be available through market swaps, subject to liquidity, pricing, and slippage. Liquid staking does not itself guarantee immediate redemption at full underlying value. [Kinetiq](https://kinetiq.xyz/docs/khype)

Ascend’s precise withdrawal routing, cross-chain requirements, and execution terms are still being finalized.


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