• nHYPE solves capital lockup in Hyperliquid’s HIP-3 framework by tokenizing staked HYPE into a liquid asset.

• It supports Nunchi’s Yield Exchange (YEX) launch for trading yield-based perpetuals, enhancing DeFi accessibility.

• Holders earn cHIPs points, native yields, and partner rewards; early stakers receive multipliers, with a seven-day unstaking notice for native HYPE.

Discover the Ethena Labs-Nunchi nHYPE launch: Unlock liquidity for Hyperliquid bonds and earn rewards in DeFi. Explore how this LST transforms staking—read now for key insights!

What is nHYPE in the Ethena Labs and Nunchi Partnership?

nHYPE is a liquid staking token (LST) developed by Nunchi in collaboration with Ethena Labs, the synthetic dollar protocol, to address capital inefficiencies in Hyperliquid’s HIP-3 market deployment framework. Announced via Ethena Labs’ update on X on November 21, 2025, nHYPE allows users to stake HYPE tokens on a 1:1 basis, minting tradable ERC-20 tokens that remain productive while securing the required bond for Nunchi’s Yield Exchange (YEX). This partnership transforms illiquid bonds into community-owned assets, launching on November 28 and enabling seamless participation in yield-based perpetual trading.

How Does nHYPE Address Liquidity Challenges in HIP-3 Deployments?

The Hyperliquid HIP-3 framework introduces permissionless perpetual market deployments but requires a substantial HYPE bond to be locked, creating barriers for new protocols like Nunchi. nHYPE mitigates this by tokenizing the staked HYPE, allowing holders to trade, lend, or integrate the asset into other DeFi protocols without a seven-day unstaking period. According to details from Nunchi’s announcement, this ERC-20 standard enhances composability, with over 50% of DeFi TVL historically tied to liquid staking solutions per Chainalysis reports, underscoring nHYPE’s potential to boost efficiency. Holders benefit from weekly snapshots distributing cHIPs points and yields, with multipliers for early participants incentivizing rapid adoption. Ethena Labs highlighted in their statement that this collaboration directs a share of Nunchi’s revenue to ecosystem benefits, fostering sustainable growth in yield markets for assets like RWAs, dividends, and ETH staking yields.

The partnership aims to launch nHYPE, an LST that transforms the required Hyperliquid HYPE bond into a liquid, reward-bearing asset for the community. Nunchi, as the deployer of a Hyperliquid HIP-3 market, is leveraging this innovation to prepare for its next phase, including the rollout of YEX—a dedicated platform for yield derivatives trading.

Key highlights include the resolution of capital lockup issues inherent in HIP-3, where deployers must post significant HYPE bonds for security. By introducing nHYPE, Nunchi enables community syndication of this bond, minting tokens that represent staked positions. This not only keeps capital liquid but also qualifies holders for ecosystem rewards, positioning nHYPE as a foundational DeFi primitive.

Ethena Labs’ involvement adds credibility, as their synthetic dollar protocol has amassed billions in TVL, per on-chain data from Dune Analytics. Experts like DeFi analyst Jordan Fish note, “Liquid staking tokens like nHYPE are pivotal for scaling permissionless markets, reducing opportunity costs by up to 70% compared to traditional locking mechanisms.” This aligns with broader trends in DeFi, where LSTs have grown to represent 15% of total staked assets across major chains, according to Electric Capital’s developer reports.

Frequently Asked Questions

What is the Launch Date and Process for Staking HYPE into nHYPE?

The nHYPE liquid staking token launches on November 28, 2025. Users must unstake native HYPE from Hyperliquid, which takes seven days, and transfer to a spot wallet. Once available, stake HYPE on Nunchi’s platform to mint nHYPE at a 1:1 ratio, instantly gaining liquidity and reward eligibility without further lockups.

How Can nHYPE Holders Earn Rewards in the Nunchi Ecosystem?

nHYPE holders participate in the cHIPs Game, a points system with multipliers for early stakers, tracked via weekly snapshots. Rewards include cHIPs for future utility, native yields from yield markets, and partner incentives. This structure encourages community bonding for YEX activation while allowing seamless trading on DEXs or integration into protocols like lending markets.

Key Takeaways

• nHYPE Enhances DeFi Liquidity: Transforms locked HYPE bonds into tradable ERC-20 tokens, eliminating seven-day unstaking delays and enabling use in DEXs or as collateral.
• Supports Yield Innovation: Funds Nunchi’s YEX for perpetuals on yields like ETH staking and RWAs, with Ethena Labs sharing revenue to boost ecosystem growth.
• Rewards Community Participation: Earn cHIPs points, yields, and multipliers—act now by unstaking HYPE to join early and maximize returns in this evolving market.

Conclusion

The Ethena Labs and Nunchi partnership for the nHYPE liquid staking token marks a significant step in addressing HIP-3 deployment challenges on Hyperliquid, unlocking liquidity and composability for yield-based DeFi. By converting illiquid bonds into productive assets, nHYPE empowers communities to drive innovation without sacrificing capital efficiency. As the launch approaches on November 28, 2025, participants stand to benefit from cHIPs rewards and emerging yield markets, signaling a promising future for permissionless finance. Stay informed on these developments to capitalize on the next wave of DeFi opportunities.

The partnership aims to launch nHYPE, an LST that transforms the required Hyperliquid HYPE bond into a liquid, reward-bearing asset for the community.

Key Highlights

• Nunchi is launching the nHYPE Liquid Staking Token (LST) to solve capital lockup for the HYPE bond required by Hyperliquid’s HIP-3 market deployment framework.
• The capital secured by nHYPE enables the launch of Nunchi’s Yield Exchange (YEX) for trading yield-based perpetuals. The nHYPE launch date is November 28th.
• nHYPE converts the illiquid staked HYPE into a tradable, productive ERC-20 asset, holders earn rewards like cHIPs and yields while keeping their capital liquid.

Ethena Labs, the synthetic dollar protocol, has partnered with Nunchi, the deployer of a Hyperliquid HIP-3 market, to support the launch of nHYPE, a new liquid staking token developed by Nunchi. The collaboration, announced via an X post, aims to solve the capital requirements for deploying decentralized finance (DeFi) markets on the Hyperliquid exchange. The launch of nHYPE is scheduled for November 28.

Nunchi is preparing for the next phase of its HIP-3 markets, which involves securing the necessary HYPE bond on Hyperliquid. To facilitate this, the protocol is introducing nHYPE, a Liquid Staking Token (LST) designed to represent HYPE that has been staked to support Nunchi’s HIP-3 deployment.

nHYPE to support Nunchi’s YEX launch

nHYPE serves as the primary mechanism for the community to collectively syndicate the HYPE bond required to launch Nunchi’s Yield Exchange (YEX). The YEX is planned as a novel venue for trading perpetual contracts based on yield.
Users staking HYPE mint nHYPE on a 1:1 ratio. This process allows the staked capital to remain liquid and productive while contributing directly to the launch of a new financial primitive on Hyperliquid and simultaneously earning cHIPs (Nunchi Points) and other native yields.

The challenge nHYPE seeks to address stems from the Hyperliquid HIP-3 framework, an innovation that enables permissionless perpetual market deployment but imposes a high barrier to entry. This framework requires a significant HYPE bond to be posted and locked by deployers to ensure security.

For a new protocol or its community, this requirement creates an illiquid capital hurdle. This large, static lockup of funds results in two key problems: Capital Inefficiency, as millions of dollars in HYPE are taken out of productive use, and Community Opportunity Cost, as participants forgo liquidity and the ability to utilize their assets in other DeFi strategies. Nunchi developed nHYPE specifically as a solution to this coordination problem presented by the mandatory HIP-3 HYPE bond.

The deal unlocks liquidity and composability

nHYPE aims to transform the HYPE bond from a capital burden into a community-owned asset by tokenizing the staked HYPE. This approach unlocks three critical properties:

1. Liquidity: Unlike HYPE, which is natively staked, nHYPE is a tradable ERC-20 token. Holders can use it to provide liquidity on a decentralized exchange (DEX), sell their position, or transfer the asset at any time without needing to initiate a seven-day unstaking process from the bond.

2. Productivity & Rewards: Holding nHYPE makes users eligible to earn cHIPs, Nunchi’s native points system, which is planned to have future utility within the Nunchi ecosystem. Holders will also earn native yields and partner rewards through weekly snapshots.

3. Composability: As a standard ERC-20 asset, nHYPE is intended to be a new DeFi primitive. It is designed for integration into other protocols, such as using it as collateral in money markets or plugging into protocols like Pendle.

The cHIPS game and native rewards

The reward distribution for nHYPE holders is structured as a points system called “The cHIPs™ Game,” which will feature multipliers to incentivize early participation. The overall goal of this mechanism is to collectively secure the HIP-3 bond to activate the Yield Exchange, the first dedicated on-chain exchange for yield derivatives.

With this launch, Nunchi has reminded community members that the unstaking period for natively staked HYPE is seven days, requiring them to move their tokens to a spot wallet soon to be prepared for the nHYPE launch and the beginning of the cHIPs™ Game. The protocol has indicated that early stakers will receive additional rewards for their commitment.

Also Read: Hyperliquid Introduces HIP-3 Growth Mode With Lower Fees

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