Hyperliquid’s USDH Stablecoin Launch Sparks Fierce Competition
Hyperliquid’s aim to launch USDH, its own stablecoin, has ignited fierce competition among corporate adn DeFi entities. The upcoming September 14 vote will decide the future of USDH and steer billions in trading volume. This move intends to lessen dependency on USDC,which now constitutes most of Hyperliquid’s reserves.
Various proposals have emerged, each with distinct strategies. For instance, ethena Labs backs USDH with USDtb, a stablecoin tied to BlackRock’s fund, promising 95% net revenue back to the Hyperliquid ecosystem. Paxos proposes PayPal and Venmo integration, emphasizing regulatory compliance and directing 95% of yield to HYPE buybacks.
- Frax Finance mints USDH at parity with frxUSD and Treasuries;
- sky ecosystem offers a 4.85% yield;
- Agora commits 100% net income to platform support;
- Native Markets suggests a 50/50 yield split.
The key challenge lies in ensuring a fair selection process. Sam, a Messari analyst, stresses that alignment for long-term synergy matters most. However, critics like Haseeb Qureshi argue the RFP might favor Native Markets, raising fairness concerns. The success of USDH hinges on balancing regulatory demands with DeFi goals.
