Hyperliquid announced it will be planning to vote on the ticker of its upcoming stablecoin and saw many proposals from top industry issuers, according to its Discord channel.
Its current onchain volume sits at $2.5B with over 600K users since its launch in 2023.
The layer 1 blockchain, popular amongst native DeFi users for onchain finance and easy perpetual trading, released an announcement revealing a network upgrade scheduled to improve spot trading features and liquidity.
Importantly, it mentioned that governance voters will have the opportunity to vote on the planned native Hyperliquid stablecoin ticker, USDH.
With that, it opened submissions for different teams willing to partner on the build and issuance, which saw leading industry issuers Paxos, Frax Finance and Agora submit their own proposals fairly quickly to indicate their intent on supporting the ecosystem with their own stablecoin.
Agora’s Stablecoin Proposal
Frax Finance Stablecoin Proposal
Paxos Stablecoin Proposal
As seen in the proposals, each issuer put forth an initial argument for why they should be chosen, using existing partnerships, as well as successes in issuing other stablecoins currently available on the market as good references for how the USDH stablecoin issuance could materailize.
However, much of the subsequent discussion from users was placed on several key factors in order to make the best decision for the ecosystem including:
- a) security and scaling opportunities with each issuer’s custodian partners and global licenses
- b) % of yield returns given back to the Hyperliquid ecosystem
- c) conflict of interest of individuals sitting on company boards.
Given that all three threw their hats into the mix, it is a good indication that the blockchain is about to see serious interest from users to settle and earn rewards on the USDH stablecoin.
Ultimately, the team that provides best roadmap for Hyperliquid overall will likely be chosen.
