USDH is a dollar-pegged stablecoin native to Hyperliquid, designed to recycle reserve yield into community rewards and HYPE token buybacks for sustainable growth.
Bidders including Paxos, Frax, Sky, and Ethena propose different reserve models and revenue-sharing mechanisms, reflecting diverse approaches to stablecoin issuance and governance.
Hyperliquid, a high-performance decentralized exchange, integrates USDH to enhance liquidity, reduce USDC reliance, and position itself as a community-driven alternative to centralized platforms.
USDH, Hyperliquid’s native dollar-pegged stablecoin, aims to reduce reliance on USDC, return reserve yields to its community, and strengthen the HYPE ecosystem through a transparent bidding process.
WHAT IS USDH?
USDH is the upcoming stablecoin developed by Hyperliquid, a decentralized derivatives exchange that has rapidly gained traction in the crypto industry. The purpose of USDH is to establish a native, dollar-pegged stablecoin that enhances Hyperliquid’s ecosystem, reduces its reliance on USDC, and distributes value more directly to its community.
Unlike traditional stablecoins where interest income is mostly captured by the issuer, USDH is designed to recycle these returns back into Hyperliquid itself. Proposals from bidders suggest that reserve yields could be directed toward buybacks of the HYPE governance token or distributed directly to users, creating a financial system that reinforces the platform’s growth.
WHY USDH IS PEGGED TO THE DOLLAR
USDH is structured to maintain a one-to-one peg with the US dollar, ensuring stability and trust for traders. This peg will be supported by reserves composed of highly liquid and secure assets such as U.S. Treasuries, short-term repurchase agreements, or other reliable dollar-backed instruments.
The issuance and redemption process is designed so that USDH can always be exchanged for equivalent assets, keeping its price aligned with one dollar. This stability is crucial for Hyperliquid, where large volumes of perpetual futures trading demand dependable settlement units.
THE BIDDING PROCESS
Hyperliquid has introduced a competitive bidding system to determine who will be responsible for issuing and managing USDH. Several high-profile projects have submitted proposals, each offering different strategies for reserves and revenue distribution.
The winning bidder will need to manage reserves transparently and securely, ensure smooth issuance and redemption, maintain regulatory compliance, and fulfill promises to distribute reserve income either to the community or through HYPE token buybacks. Some bidders have also committed to funding ecosystem incentives and cross-chain support, highlighting the scale of responsibility involved.
MAJOR PROPOSALS
Several strong candidates are in contention. Paxos offers a fully regulated model backed by U.S. Treasuries with most yield directed into HYPE buybacks. Frax Finance proposes a hybrid system using its frxUSD alongside Treasuries, promising that all revenue will flow to users. Agora and MoonPay suggest using existing infrastructure to manage issuance and return the majority of income to the community. Sky, the team formerly behind MakerDAO, emphasizes stable yield and additional liquidity, while Ethena Labs proposes a model backed by USDtb with significant incentives and community-focused returns.
Each proposal reflects different priorities, from regulatory security to user rewards, but all share the goal of building a resilient and community-centered stablecoin for Hyperliquid.
WHY USDH MATTERS
The launch of USDH could reshape the dynamics of stablecoin competition. By introducing a dollar-pegged stablecoin tied directly to its platform, Hyperliquid reduces external dependence and captures value within its own ecosystem. If successful, USDH could divert significant liquidity away from USDC, affecting Circle’s revenue model, while at the same time giving HYPE token holders tangible benefits through buybacks and yield sharing.
This model positions USDH as more than a utility token. It becomes a strategic lever to strengthen user loyalty, secure liquidity, and create long-term sustainability for Hyperliquid’s fast-growing marketplace.
ABOUT HYPERLIQUID
Hyperliquid is a decentralized exchange specializing in perpetual futures trading, built on a custom high-performance blockchain optimized for speed and liquidity. By September 2025, the platform was recording over $350 billion in monthly trading volume and a total value locked above $2.5 billion. Fees on spot trading were recently reduced by 80 percent, making the exchange even more attractive to traders seeking efficient execution.
With its expanding ecosystem, governance powered by the HYPE token, and the upcoming USDH stablecoin, Hyperliquid is emerging as a serious competitor to centralized exchanges. The platform is positioning itself not only as a leading derivatives venue but also as a self-sustaining financial hub in the decentralized economy.
CONCLUSION
USDH represents a bold step in the evolution of decentralized finance. As a dollar-pegged stablecoin native to Hyperliquid, it integrates financial stability with community-driven incentives. The bidding process ensures transparency in issuer selection and guarantees that whichever partner is chosen will commit to managing reserves responsibly while reinforcing Hyperliquid’s long-term growth.
For users, USDH means access to a stable trading currency that directly benefits the ecosystem they participate in. For Hyperliquid, it means moving closer to independence, sustainability, and a new standard for community-aligned stablecoin models.
〈Hyperliquid’s USDH Stablecoin Bidding War〉這篇文章最早發佈於《CoinRank》。
