Sky Proposes USDH Stablecoin Backed by $8 Billion and 4.85% Yield

The competition to issue Hyperliquid's stablecoin, USDH, has intensified with Sky's recent proposal. Key points include:

  • Sky, previously MakerDAO, proposes USDH leveraging its $8 billion balance sheet and a B- S&P credit rating.
  • Hyperliquid processed nearly $400 billion in trading volume last month and holds $5.5 billion in USDC deposits.
  • Validators will vote on the proposals on September 14; the Hyperliquid Foundation will abstain.
  • Sky promises a 4.85% return on USDH holdings and $2.2 billion in instant redemption liquidity via its Peg Stability Module.
  • $25 million is earmarked for a "Hyperliquid Genesis Star" investment initiative to attract deposits.
  • Other bidders include Paxos, offering zero-fee USDC migration, and Frax, which focuses on user-centric treasury yields.
  • Agora, supported by major financial institutions, vows to direct all net revenue into HYPE buybacks.
  • Ethena is also hinted as a potential bidder, adding to the competitive landscape.

This decision will shape the future structure of USDH and its alignment with either traditional finance or DeFi innovations.