9 September 2025
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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.