Stablecoin Showdown: Who Will Win the USDH Contract? 🏆💰

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Well, well, well, what do we have here? The biggest names in the crypto biz are duking it out for the coveted Hyperliquid USDH stablecoin contract! It’s like a who’s who of digital dollars, folks! Paxos, Frax Finance, Agora, and the new kid on the block, Native Markets, are all throwing their hats into the ring. 🎩🔥

Hyperliquid, the crypto trading platform that’s got more USDC than a beach has sand, is getting ready to mint its very own stablecoin, USDH. And they’re not just picking a name out of a hat; oh no, they’ve opened up a contest to see who gets the golden ticket. The final verdict will come from a validator vote on September 14, 2025, but the proposals are due by September 10. Mark your calendars, people! 🗓️💡

With nearly $5.5 billion in USDC deposits, Hyperliquid is looking to branch out and create a stablecoin that fits like a glove in its ecosystem. They want something that’s regulation-friendly and doesn’t rely so much on outside issuers like Circle. It’s like they’re saying, “We need a stablecoin that’s as reliable as my mother’s meatloaf!” 🍴🏠

So far, these four groups have officially thrown their names in the hat, and rumor has it that Ethena Labs, one of the world’s largest stablecoin issuers, might join the party soon. Stay tuned! 🎉🚀

Paxos Proposes USDH with Zero-Fee Swap

Paxos, the stablecoin issuer that’s been around since 2018, is bringing its A-game. They’ve got a new division, Paxos Labs, ready to handle USDH. If you think about it, it’s like they’re sending their secret weapon into battle. 🛡️💪

Paxos’s pitch is all about compliance and convenience. They promise users can swap from USDC to USDH without paying a dime, which is like getting a free ride on the crypto express train. Plus, they’re offering to give back 95% of the interest earnings to Hyperliquid, mostly through HYPE token buybacks and community rewards. Talk about generosity! 🎁💸

Paxos Labs Co-Founder Jun Kim even dropped a hint in Discord, saying, “The first step would be to seed AMM liquidity between USDC <> USDH and potentially other tokens to bootstrap direct onchain liquidity.” It’s like they’re laying out the red carpet for success. 🎭🌟

Frax Proposes Yield-Bearing USDH

Frax is coming at this from a different angle, proposing a yield-bearing USDH linked to its existing frxUSD, which is backed by BlackRock’s onchain Treasury fund (BUIDL). It’s like they’re offering a stablecoin with a side of interest, and who doesn’t love a little extra dough? 🍞.Butter. Butter. Butter. 🧈

The big selling point is that 100% of the Treasury yield, about 4% APR, would go straight to Hyperliquid users with zero fees. That’s like getting a 4% raise just for holding onto your money. With Hyperliquid’s current deposits, that could mean around $220 million in annual yield revenue. Cha-ching! 💸🎉

Frax is all about putting the community first, making it clear they don’t want control over USDH, just the infrastructure. They’re even hinting at future features like card spending options, which would make USDH more useful in the real world. It’s like they’re saying, “Use our stablecoin to buy your groceries and pay your rent!” 🛒🏠

Agora Proposes Native USDH

Agora, fresh off a $50 million funding round and the launch of a white-label stablecoin, is in the game too. Their current token, AUSD, is worth about $130 million and is fully backed by cash and U.S. Treasuries held by State Street and VanEck. It’s like they’ve got the financial backing of a small country! 🏦🌍

For USDH, Agora has teamed up with Rain for card payments and on/off-ramps, and LayerZero for cross-chain transfers. They’re pledging 100% of net revenue (minus custodian fees) to Hyperliquid, either for the Assistance Fund or HYPE buybacks. CEO Nick van Eck put it best, “USDH will be a Hyperliquid-native stablecoin, not a redeployed token from another ecosystem.” It’s like they’re saying, “This is our baby, and we’re going to take good care of it!” 👶💖

Native Markets Proposes USDH

The first proposal came from Native Markets, a team built within Hyperliquid itself. It includes heavy hitters like MC Lader, former COO of Uniswap Labs, and researcher Anish Agnihotri. It’s like they’ve assembled the Avengers of the crypto world. 🦸‍♂️🦸‍♀️

Native Markets plans to issue USDH through Bridge, a Stripe-acquired company, and share part of the reserve profits with Hyperliquid’s Assistance Fund. Their proposal is GENIUS-compliant and focuses on making the stablecoin secure, simple, and accessible. Author Max Fiege said the aim is a stablecoin that combines security, accessibility, and ease of use, backed by strong innovation. It’s like they’re saying, “We’re not just making a stablecoin; we’re making history!” 📜🌟

But wait, there’s a twist! Some Hyperliquid users are pointing out a possible conflict of interest because Stripe is also developing other blockchain projects, like Tempo L1 and Privy. It’s like they’re saying, “Hey, isn’t Stripe playing both sides of the field?” 🤔⚽️

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2025-09-08 14:52