Hyperliquid to Vote on USDH Stablecoin Issuer Proposal on September 14
Hyperliquid is facing a contentious governance battle over the launch of its proprietary stablecoin, USDH. Key points include:
- The USDH stablecoin may replace $5.5 billion of USDC, which currently comprises 95% of Hyperliquid's stablecoin supply.
- The validator vote on September 14 will determine who issues USDH.
- Notable bidders include Paxos, Frax, and a coalition of Agora and MoonPay, with significant debate surrounding a proposal linked to Stripe’s Bridge platform.
- Concerns exist over giving economic control to Stripe, which has built its own blockchain and controls wallet infrastructure through Privy.
- Proposals vary: Paxos emphasizes regulatory compliance, Frax offers a user-yield model, and Agora focuses on neutrality and revenue-sharing for buybacks.
- Hyperliquid holds nearly an 80% share in the DeFi derivatives market, making the stablecoin issuance rights highly lucrative.
- Proposal submissions are due by September 10, with expectations for more bids before the deadline.
- The Hyperliquid Foundation will abstain from voting, leaving the decision to validators.