Native Markets leads early voting for Hyperliquid’s USDH stablecoin contract, drawing key stablecoin teams and validators to a pivotal governance decision on compliant USD issuance, according to Discord data.
The competition affects the balance of stablecoin market power, with $200M in yield at stake, highlighting intense competition among major players like Paxos and Frax Finance.
Key Teams Rally Behind USDH Stablecoin Initiative
The Hyperliquid Foundation has initiated a governance vote to select issuers for its USDH stablecoin, drawing interest from prominent teams like Native Markets and Paxos. The initiative is gaining momentum, driven by high community engagement on Discord. Among the stakeholders, Native Markets has shown significant influence, spurring early voting activity. The Hyperliquid-proposed USDH stablecoin aims to reallocate yield from current USDC balances, with validators tasked to decide through an on-chain vote.
USDH Could Alter $378 Billion Trading Dynamics
Key players such as Paxos and Stripe have expressed interest in integrating the USDH with major platforms like PayPal. This marks a shift from reliance on USDC, potentially affecting yields and liquidity dynamics. Data reveals Hyperliquid’s $378 billion monthly trading volume could shift, resulting in tangible financial impacts. The move represents a strategic pivot towards more control over the ecosystem’s stablecoin assets.
“We’re incredibly excited about Hyperliquid leading the way and taking control of its money,” said Zach Abrams, Cofounder, Bridge (acquired by Stripe).
Proprietary Tokens Influence Liquidity Control
Historically, Hyperliquid’s governance auctions have included high-value bidding. Unlike past events, this vote centers on issuer selection, paralleling projects like MetaMask adopting proprietary tokens for liquidity control. Andrew Van Aken comments on the scale of liquidity at stake, which totals $5 billion. Zach Abrams echoes this sentiment, highlighting significant potential for Hyperliquid in consolidating USD stablecoin usage within its ecosystem.
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