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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 kHYPE reserve can only be lent out against reHYPE collateral, and as the loans are over-collateralised, there's more reHYPE taken out of circulation as collateral than kHYPE lent out as debt.

Yield & Value Accrual

reHYPE continuously earns yield through its kHYPE reserve. Every significant operation on Reliq charges a fee (denominated in kHYPE), which is routed to increase the amount of kHYPE backing each reHYPE, making the exchange rate rise over time.

For example, if at the start of the protocol 1 kHYPE backs 1 reHYPE, over time through accrual of fees, there should be 1.15 kHYPE backing each reHYPE.

The relationship is:

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

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, and this determines the price between the two assets.

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 makes reHYPE more expensive because of the fees redirected to the reserve.

Both new believers and existing holders of reHYPE 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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