Hyperliquid’s Bold USDH Gamble: Is This Crypto’s New “Stable” Future?

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Hold onto your wallets, folks, because Hyperliquid is making waves in the crypto universe! They’re rolling out their very own stablecoin, USDH, and guess what? They’re letting YOU, yes YOU, vote on who gets to issue it. With a jaw-dropping $5.6 billion in deposits and the potential to rake in $220 million annually, this move has sent top stablecoin issuers scrambling for a piece of the pie.

Confused? Well, buckle up, because here’s the scoop – and no, it’s not just about numbers. There’s drama, there’s intrigue, and yes, there’s sarcasm. Grab your popcorn. 🍿

$220 Million at Stake. No Big Deal, Right?

Right now, Hyperliquid’s stuck using USDC, but guess what? All that sweet, sweet interest earned on deposits? It goes to someone else. Enter USDH, their shiny new stablecoin that could keep all that revenue for themselves. We’re talking about a potential $220 million a year, and that’s with a short-term Treasury yield of about 4%. To put it in perspective, that’s nearly THREE times the revenue of Hyperliquid’s current vault. 🙄

But that’s not all, folks! Lower trading fees on spot pairs? Improved liquidity? Hyperliquid’s basically saying, “Look at us, we’re about to level up.” They’re hoping this will boost trading volume, make their order books stronger than a triple shot of espresso, and turn the whole platform into a more competitive powerhouse. 💪

The Stablecoin Hunger Games: Who’s Competing?

Here’s where it gets interesting. Hyperliquid isn’t just handing out the stablecoin gig to anyone. Instead, they’re letting Paxos, Frax Finance, Agora, Native Markets, and Sky (formerly MakerDAO) battle it out in a public validator vote. And it’s not your typical corporate handshake. There’s some drama. Oh yes, there’s drama.

So, who’s got what it takes? Here’s a breakdown:

  • Paxos: NYDFS-regulated, offers HYPE token buybacks, and is basically BFFs with PayPal. Everyone’s saying, “Yaaas, let’s go with Paxos!” 🙌
  • Frax Finance: Passes 100% of Treasury yields to users. No fees. Zero. Zilch. Nada. They’re like that friend who picks up the tab every time.
  • Agora: Custody with State Street and VanEck. Promises all “net” income goes to the community. So, basically, they’re all about sharing the love. ❤️
  • Native Markets: Hyperliquid-native team. They’re the hometown hero, contributing yield to a buyback fund. Cute, right?
  • Sky: Offering $2.2 billion in liquidity and 4.85% yield. They’re projecting a $250 million annual revenue. It’s like they’re saying, “Come at me, bro.” 😎

USDH powered by Sky

The best stablecoin offers so much more than just a stable medium of exchange – it should also deliver highly efficient returns, generated by actively developing, building, and growing the ecosystem it lives in.

By using Sky to power USDH, the Hyperliquid…

– Rune (@RuneKek) September 8, 2025

Governance or “Governance Theater”? You Decide!

Not everyone is buying into the whole “democracy” vibe. Some critics are calling it “governance theater,” pointing out that Native Markets submitted its proposal in a blink-and-you-miss-it hour after the announcement. Frax wasn’t much slower, submitting theirs just 10 hours later. Hmmm. Convenient timing? Maybe. 🤔

The five-day review window has raised a few eyebrows, especially when it comes to the depth of the evaluation. Is it really enough time to make a solid decision? Or is this just a play for the audience? The jury’s still out on that one.

So, What Does This All Mean for Hyperliquid?

Well, it could be a game-changer. USDH might bring in some serious cash and help Hyperliquid build a stronger ecosystem. Bye-bye, USDC? Maybe, but let’s not kid ourselves: USDC is like that reliable, old pair of jeans everyone loves. It’s gonna take a lot to replace it.

But for now, it’s all part of Hyperliquid’s high-stakes experiment. Will it pay off? Or will it crash and burn like so many before it? Stay tuned. 🧐

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2025-09-09 16:00