Ethena enters USDH race supported by BlackRock BUIDL, Anchorage, Securitize
Ethena Labs submitted a proposal on Sept. 9 to turn out to be the issuer of Hyperliquid’s native stablecoin USDH, becoming a member of an more and more aggressive race.
The bid consists of backing USDH completely by USDtb, a stablecoin backed by BlackRock’s BUIDL fund, with the help of Anchorage Digital.
Ethena is dedicated to returning 95% of web income generated from USDH reserves on to the Hyperliquid neighborhood by means of HYPE token purchases and ecosystem improvement.
Hyperliquid launched the aggressive choice course of for USDH following a Sept. 5 announcement that the protocol would introduce its native stablecoin within the subsequent community improve.
The transfer targets the $5.5 billion in USDC deposits at present serving as the first settlement foreign money on the decentralized trade.
The choice carries important monetary implications for Hyperliquid, which at present information practically $1.3 billion in estimated annualized income, based on DefiLlama data. Additionally, the community achieved an all-time high month-to-month buying and selling quantity of $405.8 billion in perpetual contracts throughout August.
Different strategy
Ethena’s proposal differentiates itself by means of institutional partnerships and proposed safety infrastructure.
The firm plans to ascertain an elected guardian community of Hyperliquid validators to supervise USDH operations, eradicating single-issuer management over the stablecoin’s safety administration.
Beyond fundamental stablecoin issuance, Ethena outlined plans to launch hUSDe, a Hyperliquid-native variant of its artificial greenback product, and dedicated $75 million in incentives to help HIP-3 market improvement.
The agency additionally introduced partnerships with Securitize to deploy tokenized real-world belongings on HyperEVM and native USDtb integration.
Competing proposals
Competing proposals supply distinct approaches to USDH backing and governance. Paxos proposes backing by means of New York Department of Financial Services-protected accounts with month-to-month KPMG attestations.
Frax Finance plans frUSD backing by means of treasury partnerships with BlackRock and Superstate. Agora gives short-dated US Treasuries with proof of reserves powered by Chaos Labs.
Sky proposes versatile collateral backing by means of its threat administration framework with LayerZero interoperability.
The validator-driven choice course of requires proposal approval by means of neighborhood governance earlier than continuing to a gasoline public sale for remaining deployment rights.
Omar Kanji from Dragonfly estimates the transition might generate $220 million in extra annualized income for HYPE holders whereas decreasing Circle’s USDC provide by 7%.
Ethena emphasised its observe file managing over $23 billion in tokenized greenback belongings and positioned itself as the most important counterparty able to supporting Hyperliquid’s enlargement into fairness perpetual swaps by means of HIP-3 markets.
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