Ethena Labs drops out of Hyperliquid’s USDH stablecoin bid citing ecosystem concerns
Ethena Labs has withdrawn its bid to concern Hyperliquid’s USDH stablecoin after validators and group members raised concerns.
In a Sept. 11 post on X, Ethena founder Guy Young confirmed the withdrawal, citing suggestions questioning Ethena’s positioning throughout the ecosystem.
Young famous that conversations with validators raised three details: Ethena shouldn’t be a local Hyperliquid workforce, it operates a number of merchandise outdoors USDH, and its broader ambitions transcend one alternate partnership.
He mentioned Ethena has chosen to step apart reasonably than contest the arguments introduced by the group.
Earlier within the week, Ethena joined the Hyperliquid stablecoin contest, which has attracted a number of groups, together with Paxos, vying to handle USDH.
Its pitch concerned backing the stablecoin solely with USDtb, a token related to BlackRock’s BUIDL. The workforce additionally pledged to return almost all reserve income to the Hyperliquid group, cowl migration prices from USDC, and inject at the very least $75 million in incentives.
Native Market positive factors momentum
Ethena’s withdrawal clears the sphere for Native Markets, which Young publicly congratulated. Notably, CryptoSlate beforehand reported that the Native Market team was a clear favorite among the many competing groups.
Young addressed critics who had questioned Native’s credibility, arguing that their success mirrored Hyperliquid’s community-driven ethos.
According to him:
“No one provides a f#ck how large you might be, your background, pedigree or monetary assets. It is a stage taking part in subject the place emergent gamers can win the hearts of the group and are given a good shot at succeeding.”
Broader plans
Although Ethena’s USDH bid is off the desk, Young careworn that the challenge’s broader plans on Hyperliquid stay unchanged.
He outlined plans to prioritize merchandise akin to artificial {dollars} (hUSDe), USDe-powered financial savings and card merchandise, and hedging flows designed for Hyperliquid markets.
Ethena additionally intends to discover HIP-3 markets, together with reward-bearing collateral, modular prime broking, and perpetual fairness swaps.
According to Young, these initiatives symbolize Ethena’s long-term technique of doubling down on innovation.
He wrote:
“We will do what we have now at all times completed since day one: outcompete everybody else on product regardless.”
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