Sky Joins Multiple Bidders to Launch Hyperliquid’s USDH Stablecoin
Crypto protocol Sky has become the fifth major contender to support the launch and issuance of Hyperliquid’s native stablecoin, USDH. The announcement follows Hyperliquid’s call for proposals last Friday, sparking a competitive bidding process among leading crypto projects.
Sky’s Proposal Highlights Competitive Yields and Multichain Features
Rune Christensen, co-founder of Sky (formerly known as Maker), unveiled his project’s detailed bid on Monday. Sky’s proposal promises to deliver a customizable USDH stablecoin offering a 4.85% yield on all USDH tokens held on the Hyperliquid platform, a rate notably higher than current US Treasury bill returns.
Additionally, Christensen emphasized that USDH would be “natively multichain,” leveraging the LayerZero cross-blockchain protocol to facilitate seamless interoperability. The stablecoin would also integrate with Sky’s existing USDS stablecoin, enabling conversions with a 4.75% yield on USDS holdings.
Customization and Regulatory Compliance Under the GENIUS Act
Sky’s bid offers the Hyperliquid community the ability to tailor USDH’s features, including compliance with US stablecoin regulations under the GENIUS Act, which prohibits yield payments by stablecoin issuers. This flexibility could prove critical as regulatory scrutiny intensifies.
Moreover, Sky commits $25 million to establish a dedicated initiative aimed at autonomously expanding decentralized finance (DeFi) within Hyperliquid’s ecosystem. This project would introduce exclusive tokens potentially capable of generating billions in value for the protocol.
Competitive Landscape: Four Other Proposals in Play
Sky joins at least four other significant bids vying to power USDH. These include Native Markets, a venture founded by Hyperliquid advocate Max Fiege proposing Stripe’s stablecoin payment processor Bridge as issuer; Frax, a prominent stablecoin protocol; Paxos, a well-established stablecoin issuer; and Agora, a crypto infrastructure firm backed by fintech company MoonPay.
VanEck CEO Publicly Endorses Agora’s Bid
Jan van Eck, CEO of investment firm VanEck and father of Agora co-founder Nick van Eck, publicly appealed to the Hyperliquid community via X (formerly Twitter) to support Agora’s proposal. He highlighted ongoing collaborations with HyperEVM developers and expressed a desire to contribute meaningfully to Hyperliquid’s ecosystem.
Van Eck also cautioned against undue pressure on his team, stating, “You wouldn’t want us as a partner if we were pushed around easily,” underscoring the competitive and politically nuanced environment surrounding the selection.
Next Steps: Hyperliquid Validators to Vote Post-Upgrade
The final decision will rest with Hyperliquid validators, who are scheduled to vote on the preferred proposal after the network completes its next upgrade, the timing of which remains unannounced.
FinOracleAI — Market View
Sky’s entry into the USDH stablecoin bidding war introduces a strong contender backed by established stablecoins with proven market adoption. The promise of above-Treasury yields and multichain interoperability could attract significant user interest, enhancing Hyperliquid’s DeFi appeal.
However, competition from established stablecoin issuers and infrastructure firms presents execution risks, particularly given regulatory uncertainties surrounding yield-bearing stablecoins. The upcoming validator vote and network upgrade will be critical milestones to monitor.
Impact: positive
