Hyperliquid

1. STAKING REWARDS IMPLEMENTATION

Staking rewards on Hyperliquid are distributed proportionally to validators based on their delegated stake. The staking mechanism is implemented within HyperCore, where HYPE tokens can be transferred between spot and staking accounts. Validators must self-delegate a minimum of 10,000 HYPE to become active. Rewards are calculated dynamically based on the validator's total delegated stake and are subject to a commission rate capped at 1% to prevent exploitation. Delegations are locked for 1 day, and undelegations enter a 7-day unstaking queue to deter attacks. The reward distribution logic is embedded in the consensus layer, ensuring real-time updates to staking balances.

Key Parameters:

• self_delegation_requirement: Minimum HYPE a validator must self-delegate to become active
• commission_rate_cap: Maximum commission rate a validator can charge, with restrictions on increases
• unstaking_queue_duration: Duration before undelegated tokens become transferable

2. VALIDATOR COMMISSION IMPLEMENTATION

Validators earn commissions from delegators, which are deducted from staking rewards. The commission rate is set by the validator and cannot exceed 1%. The commission is calculated as a percentage of the total rewards earned by the validator's delegated stake. The implementation ensures that commission rates cannot be increased beyond the cap unless the new rate is ≤1%. This is enforced through a smart contract function that validates commission rate updates before applying them. The commission is distributed to the validator's address automatically upon reward distribution.

Key Parameters:

• commission_rate: Percentage of rewards taken by the validator
• commission_update_limit: Maximum allowed increase in commission rate

3. VAULT PROFIT-SHARING IMPLEMENTATION

Vaults on Hyperliquid allow users to deposit funds and share profits with vault leaders, who receive 10% of the total profits. The profit-sharing mechanism is implemented through a smart contract that tracks deposits, withdrawals, and profit calculations. Vault leaders must maintain at least 5% of the vault's total value to prevent exploitation. Profits are distributed proportionally to depositors based on their share of the vault's total value. The contract enforces a 4-day lock-up period for withdrawals to ensure stability.