Announcing HYPE staking and Auto Earn, a simple way to put idle HYPE to work

Bonded Staking APY

2.2%

Maximum annual percentage yield for Bonded Staking.

Auto Earn and Flexible Staking APY

1.1%

Maximum annual percentage yield for Auto Earn and Flexible Staking options.

Global Availability

Available in multiple markets

HYPE Earn is available globally at launch, including the US (excluding New York and Maine), UK, EU, and Australia.

§ 01 Executive Snapshot

What: Launch of HYPE staking and Auto Earn to allow customers to earn rewards on Hyperliquid holdings.
Who: Kraken, with John Zettler as the Director of Product.
Why it matters: This development enhances customer engagement by allowing liquidity while earning rewards, contributing to Kraken's growth strategy.

Three earning options are now available: Bonded Staking with rewards up to 2.2% APY, and Auto Earn and Flexible Staking each offering up to 1.1% APY.
HYPE Earn is globally available at launch, including markets in the US (except New York and Maine), UK, EU, and Australia.
All underlying infrastructure, including validator operations and reward distribution, is managed by Kraken, ensuring security and reliability.

Expanding asset staking options like HYPE is a key component of Kraken's growth strategy, allowing for multiple economic uses of customer balances.
The ability to earn rewards while maintaining liquidity addresses common concerns in staking, thereby attracting more users to the platform.

Immediate consequence includes enhanced customer retention and engagement due to increased functionality of earning products.
Long-term implications involve improved capital efficiency and asset-based revenue growth, reducing dependence on volatile trading volumes.

Potential risks include the lack of guaranteed rewards, loss from slashing or hacks, and depreciation in asset value while staked.
Geographic restrictions apply, limiting access in certain markets which could affect user adoption.

Future developments to watch include the expansion of assets available for staking and potential adjustments to the projected annual rates.
Monitoring user adoption and engagement metrics will signal the success of the HYPE staking and Auto Earn initiatives.

§ 07

What is HYPE staking?

HYPE staking is a new feature launched by Kraken that allows customers to earn rewards on their Hyperliquid holdings.

Who is responsible for managing the HYPE staking infrastructure?

Kraken manages all underlying infrastructure, including validator operations and reward distribution, ensuring security and reliability.

Why is HYPE staking significant for Kraken's growth strategy?

HYPE staking enhances customer engagement by allowing liquidity while earning rewards, which is a key component of Kraken's growth strategy.

What are the potential risks of using HYPE staking?

Potential risks include the lack of guaranteed rewards, loss from slashing or hacks, and depreciation in asset value while staked.