The battle over who will concern Hyperliquid’s native stablecoin, USDH, has a brand new heavyweight entrant.
Sky, previously referred to as MakerDAO, submitted a proposal to energy USDH that leans on its $8 billion steadiness sheet, seven-year working historical past, and a B- S&P credit standing – the primary ever issued to a decentralized finance (DeFi) protocol.
USDH powered by Sky
The most effective stablecoin provides a lot greater than only a steady medium of trade – it also needs to ship extremely environment friendly returns, generated by actively creating, constructing and rising the ecosystem it lives in.
By utilizing Sky to energy USDH, the Hyperliquid…
— Rune (@RuneKek) September 8, 2025
Hyperliquid, which dealt with practically $400 billion in buying and selling quantity final month, has invited issuers to compete for the best to deploy USDH.
The trade holds $5.5 billion in USDC deposits, roughly 7.5% of that stablecoin’s provide, making the contract some of the profitable in DeFi. Validators are set to vote on September 14, with the Hyperliquid Basis abstaining.
Sky’s proposal highlights options few rivals can match. It provides 4.85% returns on all USDH held on Hyperliquid, a fee above Treasury payments, with income earmarked for HYPE buybacks and the Help Fund.
It additionally pledges $2.2 billion in instantaneous redemption liquidity by its Peg Stability Module, giving institutional merchants confidence they will transfer out and in at scale.
Past yield and liquidity, Sky is promising ecosystem funding. Its proposal features a $25 million “Hyperliquid Genesis Star,” modeled after Spark, a token farm inside Sky that has attracted greater than $1 billion in TVL.
Sky mentioned this might bootstrap DeFi on Hyperliquid and doubtlessly entice billions in deposits. The protocol additionally pledged emigrate its native buyback engine, with greater than $250 million in annual earnings, onto Hyperliquid.
Different bidders have framed their provides in a different way.
Paxos pledged 95% of reserve earnings to HYPE buybacks alongside a zero-fee USDC migration. Frax provided a “community-first” wrapper mannequin the place 100% of Treasury yield would circulate on to customers.
Agora, backed by State Avenue, VanEck, and MoonPay, promised 100% of web income into HYPE buybacks and confused neutrality. Native Markets, aligned with Stripe’s Bridge, has confronted group pushback over potential conflicts of curiosity tied to Stripe’s Tempo blockchain and its possession of pockets supplier Privy.
With Ethena hinting at its personal bid, validators face a crowded area once they head to the digital polls in a number of days.
The choice will decide not solely how USDH is structured, Genius-compliant, user-yielding, or Hyper-native, but additionally whether or not Hyperliquid’s financial layer is tied to a legacy stablecoin big, a DeFi-native upstart, or a company funds agency with blockchain ambitions.
