Simply put
- Esena has submitted a proposal for Hyperliquid’s Stablecoin.
- USDH is indirectly backed by BlackRock’s tokenized Buidl funds.
- Ecena channels USDH revenues into the Hyperliquid ecosystem.
Ethena Labs, the creator of the Synthetic-Dollar protocol, made a move on Tuesday, entering the USDH sphere and positioning itself as a contender to issue Hyperliquid’s Stablecoin.
Currently, decentralized exchanges and Layer-1 networks rely mainly on Circle’s USDC and Tether’s USDT, but the Hyperliquid community is exploring options for “high lipid arrangements” stubcoins as alternatives.
Proposals have already been put forth by groups like Stablecoin Issuer Paxos and World Liberty Financial, a decentralized finance project linked to former President Donald Trump, but Esena’s approach stresses the backing of its partners as well.
Ethena has broadened its alliance with Anchorage Digital, a federally licensed digital asset bank and a company focused on real-world asset tokenization, supported by BlackRock. Anchorage is behind the issuing of Ethena USDTB Stablecoin, which is also backed by BlackRock’s tokenized Buidl fund.
“We’re thrilled to enable USDTB for Ecena. It’s uniquely positioned to offer institutional-grade cash management, supplying chain liquidity for high lipid users, fully backed by Buidl,” a representative stated.
Hyperliquid, which debuted in early 2023, was initially viewed as a somewhat crude DeFi startup. However, initiatives like Esena’s are seeking constructive feedback, reflecting how perspectives about the platform are evolving. Notably, Hyperliquid currently has $5.7 billion in Stablecoins on its network, according to a Crypto Data Provider.
Esena’s proposal indicates that USDH will initially be supported by USDTB, thus, indirectly benefiting from the Buidl fund managed by a firm with $14 trillion in assets. A significant portion of USDH revenue—around 95%—will flow into Hyperliquid’s support funds, alongside distributions for hype purchases and validators.
The hype token traded around $53 on Tuesday, marking a 20% increase in just one day, as reported by Crypto Data Provider. This token serves as a governance tool for Hyperliquid, allowing its holders to engage in decisions on software updates and other initiatives.
If Ethena gets the approval, they plan to cover the transaction costs necessary for USDH to become the primary Stablecoin on Hyperliquid’s exchange, according to the proposal.
The proposal also highlights that Anchorage will natively issue Ethena USDTB Stablecoin within Hyperliquid’s network. Additionally, Securitize is set to implement its platform on Layer-1, aiming to introduce institutional-grade tokenized funds, stocks, and other financial instruments into the high lipid ecosystem without any deployment costs.
