Ethena Labs announced its bid for the stablecoin USDH amid intense bidding that could determine the future of the decentralized finance platform Hyperliquid.
Ethena Labs' Bid for USDH
Ethena Labs has become the sixth contender for control of the USDH stablecoin, announcing its proposal in a blog on Tuesday. The Ethena team offers a version of USDH fully backed by the USDtb stablecoin, which is tied to BlackRock’s BUIDL fund. If selected, Ethena has pledged to return 95% of reserve revenue to the Hyperliquid community and implement safeguards through an elected validator 'guardian network.'
How the USDH Bidding Process Works
Hyperliquid announced the opening of a community process to select an issuer for USDH. The first proposal came from Native Markets, founded by Hyperliquid advocate Max Fiege, which aims to see USDH issued through Stripe’s stablecoin payment processor. However, this proposal has faced substantial pushback from the community. Before Ethena, the latest bid was from crypto protocol Sky, which outlined a plan to issue USDH leveraging its resources.
Outlook and Implications for Hyperliquid
Ethena Labs also plans to partner with Securitize to bring tokenized funds and equities to HyperEVM and launch a Hyperliquid-native synthetic dollar called hUSDe. Ethena proposed instant liquidity routes through its existing stablecoin infrastructure. This offering could have significant implications for Hyperliquid, potentially affecting the decentralized finance ecosystem as competition intensifies.
With new proposals from Ethena Labs and other participants, the bid for USDH promises to be competitive, which may have a noticeable impact on the decentralized finance market and the development of Hyperliquid.
