The Ethena team, behind the USDe synthetic dollar protocol, has announced its decision to withdraw its bid for Hyperliquid's USDH stablecoin. This decision comes following discussions with community members and validators.
Withdrawal of Bid
Ethena stated in a post on X that they would step aside in response to pushback, recognizing community concerns about not being a Hyperliquid-native project and congratulating their competitor, Native Markets, now viewed as the front-runner.
Community Reaction
Ethena Labs founder Guy Young commented that Native Markets' success embodies the uniqueness of the Hyperliquid community. "While some are complaining about their lack of credibility, I think their success perfectly embodies everything that is special about Hyperliquid and their community," he added: > "It is a level playing field where emergent players can win the hearts of the community and are given a fair shot at succeeding."
Market Predictions
With Ethena's withdrawal, the dynamics in the market have shifted. On Polymarket, Native Markets is now given a 92% chance of winning, with Paxos in a distant second place at approximately 7% at the time of writing.
Ethena’s withdrawal has altered the landscape in the competitive environment of the USDH bidding process, seemingly solidifying Native Markets' position for future success.
