Simply put
- The project is in a competitive struggle over who will control USDH tickers to develop “highly liquid-aligned” stablecoins.
- Major players like Ethena, Paxos, Sky, and Agora have put forth their proposals, most of which include plans to benefit the high liquid community.
- Interestingly, a newer entrant from the native market seems poised to take the lead in the bidding process right now.
High fat—suddenly, a wave of contenders are earnestly vying for the opportunity to create USDH Stablecoin.
This drama kicked off last week and has now reached a fever pitch as some of the biggest names in crypto are fiercely competing for the coveted USDH ticker, which has been a hot topic among high liquid stakeholders.
Corporations like Paxos, Sky, and Frax Finance are actively participating alongside Ethena, bolstered by support from BlackRock executives. Yet, it seems the newer teams in the native market are currently leading the charge.
High lipids operate a Distributed Exchange focused on permanent futures trading, existing on its own dedicated layer-1 network. Currently, there is about $5.84 billion in stablecoins on this network—making it the fifth-largest across all blockchains. Notably, USDC dominates, accounting for 94.9% of the total stablecoin volume, with an impressive $1.076 billion trading volume registered in the last 24 hours, thus solidifying its role in the chain economy.
Aiming for stability, high lipids seek to sidestep heavyweights like Circle’s USDC and Tether’s USDT, while also looking to safeguard revenue generated by these types of coins.
The high lipids foundation asserts that “special privileges” won’t be awarded to any tokens, despite the intense competition among crypto giants to control USDH tickers. The organization indicates that the eventual stablecoin must be “Hyperliquid-first” and “Hyperliquid-Aligned,” focusing on frameworks that return revenue back into the ecosystem.
Whoever ends up launching USDH Stablecoin stands to gain significantly from the expanding high liquid community that accepts these network tokens.
To protect the network, the responsible parties must clarify their voting intentions by early Sunday and allow users to stake on validators reflecting their votes before the USDH contest wraps up the same day.
The contenders for launching the USDH Stablecoin on Hyperliquid include:
Native Market
Native Market was specifically formed to “create the best and most transparent products” for high lipids. They began exploring USDH tickers and informed the High Lipid Lab about their objectives a few months back.
They propose a whimsical stablecoin that adheres to regulatory norms and aims to align with major stable laws signed into effect recently. Their plan suggests that in 2024, they will manage preparations through platforms acquired by payment giants.
Half of the earnings generated from these reserves will be allocated to the USDH growth partnership, while the rest will go to a protocol-driven buyback fund.
On a recent Substack post, Native Market expressed readiness to launch a community-oriented stablecoin within just a few days. One notable high lipid validator, known as CMI, has already voiced support for the proposal, which indicates a favorable market sentiment towards this newcomer.
Ecena x Black Rock
Ecena recently entered the fray with backing from BlackRock, the largest asset manager globally. As the creator of the third-largest stablecoin by market cap, USDE, Ecena is positioned just behind Tether and Circle.
Ecena proposes USDH with indirect collateral from BlackRock’s Buidl fund, stating that 95% of the revenue derived from the USDH reserve will be used to support their fund or to purchase Hype, the native token for high lipid networks. It also suggests that all transaction fees be covered to make USDH the leading stablecoin in high lipids.
Pax
Paxos, a well-established stablecoin publisher behind Pax Gold and Global Dollar, is also in the mix.
Paxos argues that its tokens align with regulatory guidelines globally and plan fiat-on-ramps through SWIFT, ACH, and wire transfers, along with actual USDH payment capabilities. They’re also keen on supporting Hyperliquid tokens via their intermediary platform used by services like PayPal and Venmo.
Moreover, 95% of the earned interest will be utilized to buy Hype and redistribute funds to applications rather than purely supporting USDH revenue.
Sky (formerly Makerdao)
The Ethereum DeFi giant, Sky, formerly known as Makerdao, is also in the running. They put forward a unique proposal stating USDH would be natively multichain—available across several blockchain networks, focusing on security and risk management.
Sky would allocate part of its balance sheet towards high lipids, purchasing Hype with profits, and promising a 4.85% return on USDH for the high lipid community.
Agora
Agora, known for its AUSD stablecoin, is raising concerns around the potential conflicts of interest due to its reliance on Stripe, which is building its own Tempo Layer-1 Network.
Agora claims it will share all net profits with a support fund or reinvest into Hype, emphasizing compliance with regulations.
Flux Finance
FRAX Finance has a noteworthy proposal related to aligning with US bank issuers for USDH, although due to various constraints, specific issuer names couldn’t be disclosed. The proposal hints that USDH will be supported by the US Treasury via tokenized funding.
Others
Beyond the prominent names, several lesser-known entities are also throwing their hats into the USDH ring. Some ideas are quite humorous, while others are more serious, proposing mechanisms to recycle fees through Hype purchases to benefit the network. Many enthusiasts are eagerly anticipating the main event on Sunday, when final votes by high lipid validators will take place.
