Ethena Labs has decided to withdraw its bid for the issuance of USDH stablecoin from Hyperliquid following discussions with community members.
Ethena Labs' Decision
The Ethena Labs team announced their decision to withdraw from the bid for USDH issuance via the X platform. This decision was made after discussions with community members, who expressed a clear preference for a candidate from within the Hyperliquid network.
Native Markets Situation
As a result of this decision, Native Markets is now seen as the likely winner, with a 92% chance of success. Ethena publicly congratulated the Native Markets team and noted that the situation reflects Hyperliquid's character as a place where new entrants are given a fair opportunity.
Criticism of the Selection Process
However, the selection method has faced criticism from some industry figures. Haseeb Qureshi of Dragonfly noted that the proposal felt insincere, pointing out validator bias towards Native Markets. Lilian Aliaga of OAK Research also expressed skepticism, questioning how a new team rapidly secured over 70% of the votes.
The election for the selection of Hyperliquid’s native stablecoin issuer remains a focal point, as its outcome may impact the broader ecosystem.
