Ethena Labs submitted a proposal on Sept. 9 to grow to be the issuer of Hyperliquid’s native stablecoin USDH, becoming a member of an more and more aggressive race.
The bid consists of backing USDH solely by USDtb, a stablecoin backed by BlackRock’s BUIDL fund, with the help of Anchorage Digital.
Ethena is dedicated to returning 95% of web income generated from USDH reserves on to the Hyperliquid group by HYPE token purchases and ecosystem growth.
Hyperliquid launched the aggressive choice course of for USDH following a Sept. 5 announcement that the protocol would introduce its native stablecoin within the subsequent community improve.
The transfer targets the $5.5 billion in USDC deposits at the moment serving as the first settlement foreign money on the decentralized trade.
The choice carries important monetary implications for Hyperliquid, which at the moment information practically $1.3 billion in estimated annualized income, in accordance with DefiLlama knowledge. Moreover, the community achieved an all-time excessive month-to-month buying and selling quantity of $405.8 billion in perpetual contracts throughout August.
Totally different strategy
Ethena’s proposal differentiates itself by institutional partnerships and proposed safety infrastructure.
The corporate plans to ascertain an elected guardian community of Hyperliquid validators to supervise USDH operations, eradicating single-issuer management over the stablecoin’s safety administration.
Past fundamental stablecoin issuance, Ethena outlined plans to launch hUSDe, a Hyperliquid-native variant of its artificial greenback product, and dedicated $75 million in incentives to help HIP-3 market growth.
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The agency additionally introduced partnerships with Securitize to deploy tokenized real-world belongings on HyperEVM and native USDtb integration.
Competing proposals
Competing proposals supply distinct approaches to USDH backing and governance. Paxos proposes backing by New York Division of Monetary Providers-protected accounts with month-to-month KPMG attestations.
Frax Finance plans frUSD backing by treasury partnerships with BlackRock and Superstate. Agora provides short-dated US Treasuries with proof of reserves powered by Chaos Labs.
Sky proposes versatile collateral backing by its threat administration framework with LayerZero interoperability.
The validator-driven choice course of requires proposal approval by group governance earlier than continuing to a gasoline public sale for last deployment rights.
Omar Kanji from Dragonfly estimates the transition might generate $220 million in further annualized income for HYPE holders whereas decreasing Circle’s USDC provide by 7%.
Ethena emphasised its observe document managing over $23 billion in tokenized greenback belongings and positioned itself as the most important counterparty able to supporting Hyperliquid’s enlargement into fairness perpetual swaps by HIP-3 markets.
