Hyperliquid’s USDH: A New Wave of Stablecoin Competition

Hyperliquid is entering the stablecoin arena with a bold proposition: USDH, a dollar-pegged stablecoin designed for community engagement and growth. This innovative stablecoin aims to reduce reliance on USDC and provide direct value to its users through buybacks and yield sharing. Hyperliquid’s decision to engage in a bidding process ensures transparency in choosing the best issuer for managing USDH’s reserves. The article delves into the diverse approaches of bidders including Paxos, Frax, Sky, and Ethena, each with unique strategies for revenue distribution and reserve management.