> For the complete documentation index, see [llms.txt](https://docs.valantis.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.valantis.xyz/stakedhype/stake-accounts.md).

# Stake Accounts

stHYPE is currently allocating across 7 Stake Accounts on HyperCore.

* 5 HyperCore Staking Modules
  * [Account 1](https://hyperevmscan.io/address/0x591540F231055743A37F691C3ffd50E4E53561ab)
  * [Account 2](https://hyperevmscan.io/address/0x16a4814e8eb502C56CeBD73f9c8AC7fDeE29C042)
  * [Account 3](https://hyperevmscan.io/address/0xf992Aa323eC183733213f874b6322B8bD1Aad625)
  * [Account 4](https://hyperevmscan.io/address/0x06b5659F16110319137220d1efd680053f5e72a2)
  * [Account 5](https://hyperevmscan.io/address/0xE787DD1347a29e6807d164C4Fa43105B64048556)
* 1 [HIP-3 Staking Module](https://hyperevmscan.io/address/0xA5101B03675294C87ab7381b41d4225EB8709128) (Ethena HyENA)
* 1 [Quote Asset Deployer Staking Module](https://hyperevmscan.io/address/0x358E783C32147B344a1168e0984D3350DE4e07cB) (USDe)

<figure><img src="/files/CmgpKT0ySf8SfrgbaQFJ" alt=""><figcaption></figcaption></figure>

stHYPE is a novel LST that leverages Hyperliquid's economic design to source higher yield on its stake. Some staking activity on HyperCore unlocks additional utility, such as launching HIP-3 Markets or Quote Assets. Fundamentally, Staking Modules are only capable of staking to HyperCore, and cannot participate in Lending, re hypothecation, or other non direct staking activities.

<mark style="color:purple;">**HyperCore Staking Modules**</mark> are a fundamental part of stHYPE's architecture that allow stHYPE to circumvent the traditional restrictions on LSTs, by enabling stHYPE to operate multiple staking addresses on HyperCore. Traditionally, a single HyperCore account is limited to 5 concurrent withdrawal requests, and a 24 hour lock on re delegation amongst validators.

For this reason, most Hyperliquid LSTs are limited to 8.5 day withdraw times, and constrained operations for re delegating stake to validators. stHYPE splits a majority of it's stake among 5 identical HyperCore Staking Modules to reduce protocol enforced restrictions.

<mark style="color:$success;">This architecture leads to faster unstaking times on stHYPE (25 concurrent withdrawals, instead of 5) and increased flexibility for frequent validator re delegation.</mark>

**HyENA HIP-3 Exchange Stake Accoun**t & **USDe Quote Deployer Stake Account** are Stake Accounts which accept custom withdrawal conditions and additional validator-elected slashing risk. These Stake Accounts earn HYPE-denominated yield above the regular 2.2% Staking Emissions. <mark style="color:$success;">Currently, this delegation of 700k stake yields an additional 16,000 HYPE annually for the stHYPE protocol, split into daily rebase payments to all stHYPE holders.</mark> stHYPE is capable of achieving higher than native staking yield through this architecture and these existing HyENA USDe allocations. The additional slashing risk from HyENA HIP-3 Markets and Ethena USDe Quote Asset is validator elected according to the violations discussed in Hyperliquid Docs ([HIP-3 Slashing](https://hyperliquid.gitbook.io/hyperliquid-docs/hyperliquid-improvement-proposals-hips/hip-3-builder-deployed-perpetuals#slashing);[ Quote Asset Slashing](https://hyperliquid.gitbook.io/hyperliquid-docs/hypercore/permissionless-spot-quote-assets)). Read more about Ethena HyENA risk practices and slashing mitigation in [HyENA Docs](https://docs.hyena.trade/).

## Withdrawals

In the stHYPE Protocol, *new HYPE stake*d via *stHYPE being minted* must be first used to settle *Queued User Withdrawals* before being staked to any Staking Module. This ensures that Queued User Withdrawals are settled on the fastest available timeline, enforced by smart contracts.

Often, this leads to faster unstake times than native staking. There is no fee charged for unstaking.

[app.valantis.xyz/staking](https://app.valantis.xyz/staking?tab=withdraw) will display the estimated withdrawal time based on historical mint patterns and size of withdrawal.

<figure><img src="/files/wBHSAN1ZWzQC28VnMdgp" alt=""><figcaption></figcaption></figure>

In the absense of new stakers, stHYPE uses 5 HyperCore Staking Modules to process up to 25 concurrent HyperCore *CWithdraw* Unstakes. The HyperCore Staking Modules are designed to handle a high capacity of *HyperCore Unstake Requests* on behalf of the stHYPE Protocol.

<figure><img src="/files/QloqyHpNXJLBVZJIK5Gv" alt=""><figcaption></figcaption></figure>

Since, most LSTs are only able to process 5 HyperCore unstakes at a time, stHYPE's design enables it to settle LST Withdrawals in 7.2 days vs the 8.5 days possible with single-account LST designs.

The 5 HyperCore are for the daily operations of staking/unstaking; and these accounts will be used to settle *Queued User Withdrawals* on the standard timeline, until they are empty.

## Withdraw Scenarios

Prolonged Withdrawal timelines are possible when the HyperCore Staking Modules have been fully depleted. stHYPE's model targets the ability to process all LST withdrawals at a maximum of 7.2 days, while still entering a portion of its reserves under prolonged withdraw locks.

Currently, these are 2 Stake Accounts totaling 700k HYPE, which follow non-standard withdrawal constraints

* HyENA delegation is returned to stHYPE protocol within' maximum 90 day if stHYPE drops below 1M circulating supply.

stHYPE will manage withdrawals at high-frequency out of its Standard HyperCore Stake Accounts at unchanged capacity, until these accounts become completely empty. Only when stHYPE's total circulating supply drops below 700k, do User Queued Withdrawals need to be processed out of the non-standard Stake Accounts with prolonged withdrawal timelines.

stHYPE prevents prolonged user withdrawal times in large exit scenarios through an automated recall of stake from HyENA delegations below the 1M stHYPE TVL threshold. This leaves a buffer of 300k before user's can experience prolonged withdrawal times- reaching a maximum of 90-days in worst-case conditions.

NOTE: Prolonged User Queued Withdrawal Requests are entirely possible in the event that stHYPE is unable to manage it's reserves in HyperCore Staking Modules to processes the influx of Withdrawal Requests. Though, there are extensive failsafes to prevent these scenarios.

### Reflexive Yield in stHYPE

As stHYPE approaches this lower TVL threshold, yield increases.

The 700k being allocated to Hyena HIP-3 & USDe are earning an increased stable HYPE-based yield:

* 200k USDe Quote Asset - 5.2%
* 500k HyENA - 4.2%

The overall effect this yield has on stHYPE is dependent on the total TVL present in Standard Stake Accounts, which earn only 2.2%.

<figure><img src="/files/UhISM1wC8vW48we1R6ME" alt=""><figcaption></figcaption></figure>

The effect of increased yield in lower TVL scenarios acts as a natural magnet for a liquidity to ensure User Pending Withdrawals do not see prolonged timelines.

<figure><img src="/files/FmotNGLygTwYtH5vnp6t" alt=""><figcaption></figcaption></figure>

## HIP-3 Withdraw Cooldown

When users queue withdrawals below 700k in TVL, these users have forfeited their yield, and instead have requested that their stHYPE be honored 1:1 with HYPE in the FIFO withdrawal queue.

Users in this queue are fulfilled when:

* New stakers supply HYPE to the stHYPE Protocol.
* Withdrawal from a Stake Account is complete.

Unlike Standard Stake Account Withdrawals, Non-standard Stake Account Withdrawals still earn staking yield while they are being processed, but this yield is only shared amongst the active depositors only.

<figure><img src="/files/5Ft7WToQpcIODUbTnoEg" alt=""><figcaption></figcaption></figure>

Since users in the FIFO withdrawal queue no longer earn yield, but their deposit is still yield bearing for the protocol, this phenomenon incentivizes new depositors in liquidity crunches. New stHYPE depositors who are offered exponentially increasing staking rewards, will settle user withdrawals in <90 day window.

Any new deposits or mints into the stHYPE Protocol are first used to settle pending unstake requests.

### HIP-3 Withdraw Cooldown Failsafes

The primary function of stHYPE's design is to make HYPE more productive without presenting noticeable or significant withdrawal delays for users. This is done through active liquidity management from the Protocol Delegator, close alignment with partners, and hard definitions of maximum recall timelines for underlying funds.

In the event that stHYPE is unable to honor it's withdraw queue in the standard 7-day timeline, actions can be taken to ensuring user withdrawals are settled on the fastest possible timeline, this includes, but is not limited to:

* Utilizing Protocol Fees to mint stHYPE and settle user withdrawals.
* Coordination with custodians / HIP-3 operators to replace the stake in under the defined 90 day deadline.