Hyperliquid's governance token, HYPE, has recently witnessed a substantial surge, climbing beyond the $50 mark. This impressive momentum is largely attributed to a high-stakes competition among leading stablecoin issuers, who are vying for the exclusive right to manage Hyperliquid's proposed stablecoin, USDH. The intense bidding war underscores significant market confidence in Hyperliquid's strategic direction and its ambition to launch a robust, well-backed stablecoin.
Paxos's Ambitious Proposal for USDH
Veteran stablecoin operator Paxos, through its newly formed Paxos Labs division, has submitted a comprehensive bid focused on regulatory compliance and broad integration. Paxos pledges to ensure USDH adheres to European and U.S. stablecoin regulations, deploying the token directly on Hyperliquid’s HyperEVM and HyperCore chains. Their proposal details the use of top-tier reserves, including T-Bills, Repos, and USDG. Financially, Paxos offers an aggressive revenue-sharing model, dedicating 95% of the interest generated from USDH reserves to purchasing HYPE tokens for ecosystem partners and users. Furthermore, Paxos committed to listing HYPE across its extensive brokerage infrastructure, which powers major platforms like PayPal and Venmo, while maintaining an open infrastructure to foster developer innovation and maximize USDH's liquidity.
Agora's Coalition and Neutrality Pledge
In a spirited counter-offer, stablecoin developer Agora, issuer of the VanEck-backed AUSD, has presented a coalition-based approach. Their plan brings together key partners such as Rain for fiat and card services, LayerZero for seamless cross-chain interoperability, and Moonpay for widespread retail accessibility from launch. Agora's financial commitment involves sending all net revenue generated from USDH operations directly back to Hyperliquid, either through its Assistance Fund or via open market HYPE purchases. Agora’s CEO, Nick van Eck, underscored that USDH would be native to Hyperliquid, not simply repurposed from another ecosystem, and emphasized Agora’s neutral issuer status, ensuring it would not compete with Hyperliquid's partners due to a lack of its own chain or brokerage.
