How Does HyperLiquid Staking Work?

1. Staking Initiation

   • Users lock their assets into HyperLiquid staking contracts via the DonutSwap AI platform.

   • Supported tokens may include multichain assets like Ethereum, stablecoins, and platform-specific tokens like $YUM.

2. Dynamic Allocation

   • The staked assets are deployed to liquidity pools across multiple chains.

   • Dynamic Liquidity AI monitors market conditions and redistributes liquidity to high-demand pools in real-time.

3. Reward Generation

   • Rewards are earned through transaction fees, arbitrage opportunities, and yield farming strategies implemented by the AI.

   • HyperLiquid staking rewards are distributed in native tokens or $YUM tokens and can include bonuses for long-term participation.

4. Cross-Chain Synchronization

   • Staked assets and rewards are managed through DonutBridge Protocol, ensuring seamless movement between chains without requiring manual intervention.

5. Withdrawal and Compounding

   • Users can withdraw rewards or reinvest them to compound their earnings.

   • The system incentivizes compounding with higher tier rewards and lower withdrawal fees for stakers who remain longer in the ecosystem.