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reHYPE: The Reserve-Backed Asset

The Reliq economy is centered around a reserve-backed asset, $reHYPE. This asset is fundamental to Reliq's value accrual and distribution, fully-backed by kHYPE.

reHYPE is fully-liquid, can be freely minted and redeemed, can be used as collateral to borrow kHYPE, and its price can never fall down, always up.

Backing & Relationship with kHYPE

As reHYPE can only be minted by depositing HYPE or kHYPE into Reliq, the protocol accrues a mass reserve of kHYPE that backs every single reHYPE in circulation.

The reserve forms a hard backing for the token as it's never re-allocated. The reserve can only be lent out against reHYPE collateral, and as the loans are over-collateralised, there's more reHYPE taken out of circulation than kHYPE lent out.

Yield & Value Accrual

reHYPE earns yield continuously through its kHYPE-backed reserve. Every piece of value that flows into Reliq increases the amount of kHYPE backing each reHYPE, which makes the exchange rate rise over time.

The relationship is:

1 reHYPE = X kHYPE
(X = 1 + k · f), where f = fees accrued by the protocol

As backing increases or supply decreases, the price rises. Reliq achieves this through two yield channels:

Yield is earned through two main channels:

  1. kHYPE Yield
    All kHYPE held in the reserve continuously accrues HYPE staking rewards. These rewards compound internally, forming the baseline yield that every reHYPE holder benefits from.
  2. Protocol Revenue
    Every action in Reliq—minting, burning, borrowing, leveraging, and liquidations—routes a majority of its fees directly into the reserve. This increases the kHYPE backing and pushes the exchange rate higher.

Instead of distributing yield as cashflow, Reliq accrues value directly into the token. As the ratio of backing rises, each reHYPE becomes worth more kHYPE over time.

Minting & Redemption

reHYPE can be minted or redeemed freely: no lockups, no cooldowns.

  • Mint: Deposit kHYPE → receive newly issued reHYPE
  • Redeem: Burn reHYPE → receive the underlying kHYPE

Each mint happens along a monotonic price curve. As more participants mint, each new reHYPE costs slightly more kHYPE than the last. Similarly, every redemption also make kHYPE more expensive thanks to the fees redirected to the reserve.

Both, new believers exercising their faith, and the jaded one looking to exit, end up pushing the price of reHYPE upward.

Utility

reHYPE is a productive asset that accrues value over time. Holders can:

  • Use reHYPE as collateral to borrow kHYPE at up to 99% LTV
  • Take a leveraged position for amplified exposure to Reliq's value accrual
  • Hold reHYPE as a yield-bearing asset with strong guarantees
  • Provide liquidity for reHYPE/kHYPE on UltraSolid to earn emissions
  • (Future) Access structured yield offerings powered by Reliq's internal Loan Book

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