# Elysium (/providers-execution/elysium)



[Elysium](https://elysium.kinetiq.xyz/docs/what-is-elysium) is Kinetiq's DeFi Layer 2 for the Hyperliquid ecosystem. It settles to HyperEVM and uses native HYPE for gas.

Market Lab gives tokens deployed on Elysium a public liquidity option: anyone can create a pool, and other holders can help fund it. This sits alongside projects such as [Ascend](https://ascendlaunch.gitbook.io/docs/the-ascend-token-lifecycle), whose launch pools use closed liquidity provision. Market Lab pools are separate, not an adapter for Ascend's pools.

## How It Works [#how-it-works]

Choose a **[pool](/pools)** to supply two tokens and earn LP fees, or a **[bonding market](/bonding)** to sell an existing token allocation for native HYPE without supplying a second asset. Both support optional automatic fee management. The steps below cover pools.

1. **Create and seed.** Choose two ERC-20 tokens, a swap fee and its allowed bounds. The creator makes the first deposit, setting the initial price.
2. **Open to other holders.** Anyone can then deposit both tokens and receive LP shares representing their share of the pool. Traders swap against its reserves; swap fees remain in the pool for LPs. The value of those shares can fall as prices move.
3. **Start dynamic fees.** Authorize and fund a fee operator, then start `mlab pool run`. The daemon observes the pool's price movement and updates its swap fee within the fixed bounds. Creating a pool alone does not start this job.

The on-chain pool holds the tokens and handles swaps; the off-chain daemon adjusts the fee. If the job stops, the pool continues working at its last applied swap fee. The operator cannot withdraw other users' LP assets.

Market Lab uses a custom constant-product AMM, following the pricing model used by Uniswap v2. It does not use Uniswap v4 contracts or hooks.

Start with the [first-time pool setup](/pools#first-time-setup), including the wallet-signing steps between commands.

## Network [#network]

| Setting     | Value                                                                              |
| ----------- | ---------------------------------------------------------------------------------- |
| Network     | Elysium testnet, chain `99801`                                                     |
| RPC         | `https://testnet-rpc.elysium.kinetiq.xyz`                                          |
| Gas         | Native HYPE                                                                        |
| Pool assets | Standard ERC-20 tokens, including wrapped HYPE                                     |
| Signing     | Your wallet for creation and deposits; a separate operator for dynamic fee updates |

Create a pool for two standard ERC-20 tokens deployed on Elysium. You are not limited to USDC or to Market Lab's WHYPE wrapper: use your own token pair, and deploy your own wrapper if needed. Native HYPE pays gas; wrap only the amount you want to use as a pool asset.

The [pool setup guide](/pools#create-a-pool) includes a USDC/WHYPE example with deployed testnet addresses, deposit amounts and [wrapper deployment commands](/pools#deploy-your-own-wrapper). These assets are examples, not requirements.

`mlab pool create` prepares creation through the Market Lab factory. The other pool commands work with pools registered by that factory, not pools belonging to another DEX.

## Command Scope [#command-scope]

For a first-time trial, [`mlab token create`](/pools#create-a-test-token) prepares a fixed-supply test token with your name, symbol and supply. Your wallet receives the tokens, which you can use to seed a pool. This is optional; existing tokens do not need to be redeployed.

Use `mlab pool` and [`mlab curve`](/bonding) for wallet-prepared transactions and automatic fee jobs. Wallet actions prepare unsigned transactions; your wallet signs and sends them. Fee jobs run separately in `mlabd`.

[Python scripts](/scripting-v2/elysium) can consume enriched Elysium trades and submit swaps, pool deposits and withdrawals through `mlabd`. Set up their separate trading wallet with `mlab auth set elysium`. This supports Market Lab factory markets only, not external AMMs or order-book bots.

Add `--rpc-url` to use another endpoint for the same chain. See [Elysium's builder docs](https://elysium.kinetiq.xyz/docs/building-on-elysium) for network setup and tooling.