One week after the opening of a contest to decide the first -native Stablecoin, USDH, Hyperliquid was preparing for a validator vote on Sunday to select the winner of what quickly became one of the most closely watched community decisions.
Hyperliquid, a decentralized exchange for eternal futures that launched its own Layer-1 in November 2024, was administered $ 330 billion in the amount of trade in July with a team of 11 people. The USDH will serve as the first property of the platform dollar, which provides entrepreneurs with a stable account unit and collateral choice within the Hyperliquid ecosystem.
The vote will decide which company controls the canonical stablecoin of the exchange and gets access to the billion -billion stablecoin flow.
The breed has already seen twists. On Thursday, Ethena removed its bid and endorsed new native markets. That leaves Paxos, Frax, Sky, Agora, Curve, still open and Bitgo.
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Native market
Native markets are first team to file a proposal For the USDH, which it did on September 5.
Obviously formed to launch a hyperliquid-native stablecoin, the group promised to mint USDH directly to Hyperevm and split reserve harvested evenly between hype purchases and ecosystem growth.
Its plan is dependent on Stripe tokenization platformBridge, to manage reserves. This selection won the early backing validator but also sparked pushback from competitors who warned potential conflicts with Stripe’s blockchain ambitions.
Hyperliquid investing Max Fiege, former uniswap labs resident MC Lader and blockchain researcher Anish Agnihotri led the adventure.
Current odds of native market to Polymarket: 96%.
Paxos
Also on September 5, the Stablecoin Infrastructure Company Paxos submitted a proposal To launch the USDH, a hyperliquid-first stablecoin designed to adhere to both the US Stablecoins Act (Genius Act) and the European Union’s Markets in crypto-assets (Mica) outline.
Files say that 95% of interest generated from USDH reserves will be directed toward the purchase of the Hyperliquid’s native token hype and its redistribution to validators, users and partners protocol.
“We are the only firm who has launched and scale multiple regulated stablecoins, including Binance USD up to $ 25B+ and PayPal USD up to $ 1B+,” Paxos told its its announcement.
Paxos also pledged to include USDH on the broker platform, which Paypal and Venmo have already used.
The current odds of paxos in polymarket: 4%.
Sky
On September 8, the Ethereum Decentralized Finance (DEFI) Pioneer Sky, the decentralized Stablecoin USDS (formerly Dai), submitted its proposal. Sky’s pitch stands for the promise to make USDH native multichein by layerzeroallowing the token to spin the networks from the sun.
The team is also focusing on deploying part of its Hyperliquid balance, which offers the community a 4.85% return to the USDH, and direct income towards hype purchases and aid funds.
Current sky odds in polymarket: less than 1%.
Finance of frax
Decentralized financial finance protocol, provided frxusd stablecoin, structured by its proposal to issue a USDH by a cooperation with a federal regulated US bank, even if the bank is not named.
The Plan will return the USDH one-for-one with the tokenized US treasurys, ensure that following the entire Genius Act, and recycle the entire treasury yield to the Hyperliquid ecosystem.
Frax described its approach as “something that nothing else matches: restore everything to the community.”
The current odds of Frax Finance in the polymarket: less than 1%.
Now
Also on September 8, Agora, the AUSD Stablecoin, was passed a Proposal to launch USDH Vaneck is included as the asset manager. The proposal bid features a commitment to direct 100% of the net We are from reserves to hype buybacks or the help fund.
Agora also clearly criticized the indigenous markets on Stripe’s bridge, which warned that Stripe’s plans for its own tempo blockchain could create conflicts of interest for hyperliquid.
https://www.youtube.com/watch?v=6G35Ewcewum
“If Hyperliquid removes canonical stablecoin in the stripe, a vertical one that has given up with clear conflicts, what are we doing? Says In X.
Agora’s current odds in polymarket: less than 1%.
The remaining competitors
Three last minute bids were submitted in Sept. 10, the last day of the proposal window, and has not appeared in the polymarket prophecy markets.
They come from the curve, the Ethereum based on the decentralized exchange known for stablecoin pools; Opened, opened, A real-world asset tokenization platform;;;;;;;;;;;;;;;;;;;;;;; And bitgo, a US crypto custodian and trust company.
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How is USDH vote work
The USDH vote marks the first major hyperliquid management decision beyond regular asset removal. Voting will take place completely onchain between 10:00 and 11:00 UTC on Sunday, with the validation strength determined by the volume of staked hype tokens and the delegators freely shift their support.
One proposal must win two-thirds of the total stake to pass, even the Hyperliquid Foundation and staking provider Kinetiq-who controls about 63% of tokens-has promised to avoid.
Buildup in the vote at the same time a rally on the hype, which hit a new full time $ 57.30 on Friday, according to data from Co ringecko.
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