Several stablecoin issuers have applied for $USDH, so stay tuned.
Many people have been misled by rumors into believing Hyperliquid will issue USDH. This is not the case; the ecosystem will be responsible for this.
The Foundation currently holds the majority of votes on proposals based on staked assets. Although it will vote for the team with the most votes (abstentions), Jeff's individual role as the de facto core means the current level of centralization is far higher than that of Ethereum, which is a purely ideological leader.
This isn't a bad thing for now, as it ensures that the voting trend will ensure that USDH is awarded to the team that best aligns with the Hyperliquid ecosystem's principles. This means that the majority of profits must be distributed to the community, rather than simply for personal gain. The Frax and Paxos proposals also support this point. The former distributes all underlying treasury bond returns to users, with liquidity governance handled by HYPE, rather than its own Frax. The latter, on the other hand, promises to allocate 95% of the interest from the reserves backing USDH to repurchase $HYPE and redistribute it to ecosystem initiatives, partners, and users.
Both proposals are quite competitive and, as expected, will provide Hype with over 150 million in annual demand. Of course, Paxos's "redistribution" is bound to be highly inflated. I prefer Frax's model, which distributes funds directly to users on-chain, reducing the amount of manipulation required.
Although many people have mentioned @ethena_labs, I haven't seen their proposal yet. I suggest they give it a try.
twitter.com/ZKSgu/status/19646...
