D Builder.HL 📈📉

Elysium 101, #5: launchpad economics every launchpad and trading app charges fees. the question is where that money goes, and on @Enter_Elysium there are two different models model one: the app has its own token, and fees buy it back. holders of that token benefit directly model two: fees go back to the wider ecosystem instead, mostly through $KNTQ buybacks model two already has real money behind it. @AscendLaunch just bought $120K of KNTQ from its fees, 40% burned for good and 60% put back into liquidity and builders 👇 and Banana Gun and Oku have pledged 40% of their trading fees to KNTQ buybacks too think of it like two cafés. one gives loyalty points that only work at that café. the other puts its profits into fixing the whole street neither is wrong. one rewards a single community, the other strengthens the chain everyone’s using why it matters: before you ape a launchpad or its token, know where its fees end up tomorrow: the final part, staying safe

this is the tool I’ll be using for my weekly Elysium numbers what it shows after 4 days: sequencer fees averaging ~204 HYPE a day, about $14.8K half goes to $KNTQ buybacks, so roughly $222K a month at this pace ~350K KNTQ queued to burn, but the first sequencer buyback hasn’t happened yet for context, that’s above the bear case and below the base case in @DrewTech’s model. week four will tell us which way it’s heading

Elysium 101, #4: the HyperCore connection, the real unlock four to six weeks after launch, @Enter_Elysium gets a direct line into @HyperliquidX. it works both ways: reading: apps can see HL’s full-depth order books, oracle and mark prices, and the balances and positions of any HL account. on HyperEVM, apps could only see the top of the book trading: apps can place orders straight onto HL’s books in around 100ms think back to the city. right now the express suburb has its own shops. once this lands, it gets a fast road straight into the main market what that unlocks: lending apps that price off HL, vaults that hedge on HL perps, and trading agents like the ones I wrote about with @CircuitAI 👇 all living on Elysium but using HL’s real liquidity the safety net: apps can only trade through this connection. they can’t withdraw or move your funds out the trade-off: the data is a few hundred milliseconds old, so apps that need HL’s exact state at that instant are still better off on HyperEVM why it matters: day one Elysium is a fast chain with apps. a few weeks in, it becomes the place to build on top of HL itself h/t @eth_elian for the best breakdown of this tomorrow: how launchpads make money, and where it goes

Elysium 101, #3: the sequencer, explained every transaction on @Enter_Elysium goes through a sequencer. it puts transactions in order, bundles them up, and settles them back to HyperEVM think of it like the ticket machine at a busy deli counter. it decides who gets served next, and it charges a small fee for the privilege those fees are paid in HYPE, and this is where it gets interesting. half go to $KNTQ buybacks and burns. the rest funds builders and the treasury. more activity on Elysium means more buybacks I covered how ordering works, the MEV worries and the safety valves earlier this week 👇 short version: one sequencer at launch is a real trade-off, but it’s how most L2s start why it matters: the sequencer is how Elysium makes money, and how that money finds its way back to @Kinetiq_xyz tomorrow: the HyperCore connection, the real unlock

It just keeps on going!!!

Elysium 101, #2: getting in and out with HYPE @Enter_Elysium doesn’t have its own gas token. you pay fees in HYPE, so there’s nothing new to buy getting in: bridge HYPE from HyperEVM 1:1 through the official bridge. what you send is what you get getting out: moving back to HyperEVM isn’t instant. there’s a challenge period, a window where anyone can flag a dodgy transaction before funds are released. it’s a security feature, not a bug the shortcut: you can trade Elysium tokens through @fomo without bridging at all think of it like a secure building. walking in is quick. walking out with something means a check at the door first why it matters: don’t bridge money you might need back in a hurry tomorrow: the sequencer, what it is and why it matters for $KNTQ

most KNTQ bull posts skip the unlocks. this one builds the whole model around them a few things stood out: - $KNTQ trades around 34x revenue. the median L2 token is 176x - partners are already buying. Banana Gun and Oku pledged 40% of their fees to $KNTQ buybacks the target only needs about $750K a month in buybacks. more than Blast did, about a third of Robinhood Chain and he says when he’d be wrong: buybacks under $110K a month through March 2027 worth the read, by @DrewTech

I said the real question was whether other builders copy the @AscendLaunch model here's the first proof it works. $120K of $KNTQ bought from fees, 40% burned one app did this in a week. the next few that copy it are where it gets interesting

Elysium 101, #1: how the three layers fit together if you’re confused about HyperCore, HyperEVM and @Enter_Elysium, you’re not alone. here’s the simple version HyperCore is where @HyperliquidX’s order books live. the perps and spot trading everyone knows HyperEVM is the smart contract layer next to it, where apps like Kinetiq are built Elysium is a new layer on top, built for apps that need more speed. it settles its activity back to HyperEVM think of it like a city. HyperCore is the main market, HyperEVM is the business district next door, and Elysium is a new express suburb with fast roads that all lead back in why it matters: apps on Elysium get speed, but everything still ties back to HL. in about a month, Elysium apps can trade in the main market directly too tomorrow: how HYPE gets you in and out, and why leaving takes a while

a reminder to all to invest only what you're willing to lose if you choose to click the button, you choose to uphold that risk no crying in the casino

the reason this works: Robinhood, Binance and Coinbase books sit on private servers behind KYC. no contract will ever touch them HyperCore’s books are onchain. so once the upgrade lands in 4–6 weeks, a contract on @Enter_Elysium can price off them, hedge on them and trade on them in ~100ms, while users keep custody every exchange chain has a backyard. Elysium is the only one with a door into the house of all finance

the best long read on Elysium so far. here’s the short version if you don’t have 20 minutes the big claim: @Enter_Elysium could be the first L2 that makes its L1 richer, not poorer the problem it solves: HyperEVM is kept slow on purpose, around 3.5M gas a second, so it never gets in the way of HL’s order book. that rules out anything fast, and swaps have cost up to $20 at busy times. HyperCore spot is down 80%+ from its peak while Robinhood Chain did $25.7B of DEX volume in October alone. the demand is there, the blockspace wasn’t what Elysium brings: HYPE as gas, bridged 1:1. 100ms blocks and a target of 300M gas a second, about 85x HyperEVM (not proven under real load yet). in 4–6 weeks, contracts can read HL’s order books and place trades on them in about 100ms, through agents that can trade but never withdraw is it extractive? on blockspace, yes, as much as Base is to Ethereum. fees go 50% to $KNTQ buybacks, 25% to apps, 25% to Kinetiq, instead of burning HYPE but HL doesn’t make its money from blockspace. HyperEVM gas is worth about $1M a year. HL made about $680M, almost all from trading fees. Elysium can add to that through: market makers hedging on HyperCore new USDC, since HL earns about 90% of the reserve yield new listings, as tokens graduate to HyperCore order books and perps what could get built: onchain market makers hedging on HL, and options that share collateral with your perps. their example is 5,000 HYPE writing calls while still backing about $237K of perps, instead of losing that borrowing power by moving it to another venue the risks they flag: it never gets past memes. if it’s still mostly launchpads by end of March 2027, that’s a fail it’s zero sum, just moving activity around Hyperliquid. watch USDC bridged in from outside and HyperEVM’s DEX volume trust. one sequencer, approved validators, and a lot riding on Kinetiq their bar is simple: Elysium has to bring HL more in fees, USDC and listings than it costs in HyperEVM gas. the gas is small, so the bar is low worth the full read.

best breakdown of the HyperCore connection I've seen. the full-depth order books part is what gets me. on HyperEVM apps could only read the top of the book going deeper on this in my Elysium 101 series on Friday

it’s launch day for @Enter_Elysium. here’s the quick version of what’s coming when it goes live a new Layer 2 built by @Kinetiq_xyz for @HyperliquidX. HYPE is the gas token, blocks aim for 100–200ms, and everything settles back to HyperEVM lined up for day one: swaps on Uniswap, 0x and KyberSwap, trading on pump.fun and fomo, options on Derive and Hypercall, AI agents on Circuit, and launchpads like Ascend the big upgrade lands about four weeks after launch, when apps on Elysium can trade straight onto HL’s order books only use links from the official Elysium account, and check every contract address. there’s no token and no airdrop to claim starting tomorrow I’m doing a daily breakdown of how it all works. Elysium 101, six parts. follow along 👇

Today is the day!!!

big wallets usually wait to see if a chain survives before adding it. OKX adding @Enter_Elysium on day one 👀

everyone’s saying @Enter_Elysium will die like @arc. so I looked at what actually happened to Arc a month after mainnet, Arc had lost 94% of its daily users. 82% of day one volume came from memecoin launchpads, and only 0.34% of tokens launched hit their target. one self-trading wallet made up 38% of all volume the crowd left because there was nothing to stay for once the memes died but one thing held up. lending. borrowing on Morpho went from $0 to $190M. the real users stuck around for real products so does Elysium have the same problem? partly. pre-launch has been very meme heavy, and day one volume will drop here too. that’s what launches do the differences: - no token and no points, so there’s nothing to farm and dump - gas is HYPE, so the people showing up already hold the asset - options, agents and a direct line into @HyperliquidX order books give people reasons to stay after the memes cool off the number to watch isn’t day one. it’s week four

why I’m watching @Enter_Elysium closely into Sunday: HyperEVM laid the groundwork. Elysium is built for the high-speed trading apps that need more room to grow, with HYPE as gas day one apps include Uniswap, pump.fun, fomo, Derive options and Circuit agents half of sequencer fees go to kinetiq:native buybacks, and @AscendLaunch is already sending most of its fees there the HyperCore connection lands about a month in. that’s when apps can trade straight onto @HyperliquidX order books launch day is the headline. the first month is the real story. I’ll be tracking it here

seeing a lot of “Elysium is extracting” and MEV talk this week. I went through the docs to see what’s actually true how ordering works: @Enter_Elysium has one sequencer, run with Conduit. it orders transactions by priority fee, so whoever pays more goes first. there’s no public mempool, which makes it harder for outside bots to see your trade before it lands the fair worries: right now it’s one operator, and the validators checking its work are approved rather than open to anyone. so yes, at launch you’re trusting the setup. and bots can still pay higher priority fees to get in first, which is why launches get sniped the safety valves: if the sequencer ever refused your transaction, you can force it through on HyperEVM. it’s slow, about a day on testnet, but it means nobody can lock you out. the plan is to open validation up to anyone over time on “extracting”: every chain charges fees. on Elysium they’re paid in HYPE, and half go to kinetiq:native buybacks. you can argue about the split, but the money isn’t disappearing this is the same way Arbitrum and Base started. centralised at launch is a real trade-off and worth watching. it’s not the same thing as a scam

most people will read this as “bots on a new chain”. the bigger part lands about a month after launch once @Enter_Elysium switches on its HyperCore connection, apps there can place trades straight onto @HyperliquidX order books in about 100ms so your strategy runs on Elysium but trades against HL’s real liquidity and there’s a safety net built in. through that connection an agent can only trade. it can’t withdraw or move your funds anywhere day one, @CircuitAI agents run on Elysium. a month later, they could be trading HL’s liquidity from there. that’s the part to watch