The battle over who will issue Hyperliquid’s original stableecoin, USDH, has a new heavy weight participant.
Sky, formerly known as Makerdao, submitted a proposal to operate USDH, leaning on his balance of $ 8 billion, seven-year operating history and a BS & P credit assessment- The first ever issued for a decentralized funding (Defi) Protocol.
USDH driven by cloud
The best stablecoin offers so much more than just a stable exchange medium – it should also deliver very effective returns generated by actively developing, building and growing the ecosystem in which it lives.
By using cloud to operate USDH, hyperliquid …
– Rune (@runekek) September 8, 2025
Hyperliquid, which handled nearly $ 400 billion in trading volume last month, has called on issuers to compete for the right to deploy USDH.
The exchange owns $ 5.5 billion in USDC deposits, approx. 7.5% of this stablecoin supply, making the contract one of the most lucrative in defi. Validators are set to vote on September 14, with the Hyperliquid Foundation.
Sky’s suggestions highlight contain few rivals can match. It offers 4.85% return on all USDH held at Hyperliquid, a rate over the Treasury proposal, with revenue up for hype -repurchase and the aid fund.
It also raises $ 2.2 billion in immediate redemption of liquidity through its PEG stability module, giving institutional dealers confidence that they can move in and out in scale.
In addition to yield and liquidity, Sky is promising ecosystem investments. Its proposal includes a “Hyperliquid Genesis star of $ 25 million, modeled after kicking, a token farm within the sky that has attracted more than $ 1 billion in Tvl.
Sky said this would bootstrap defi on hyperliquid and potentially attract billions in deposits. The protocol also promised to migrate its original repurchase engine by more than $ 250 million in annual profits, to Hyperliquid.
Other bidders have framed their offerings differently.
PAXOS pledged 95% of reserve earnings to hype-repurchases along with a zero fees USDC migration. Frx offered a “community-first” wrapping model, where 100% of the Treasury Select would flow directly to users.
Agora, supported by State Street, Vaneck and Moonpay, promised 100% of the net revenue for hype -baking and stressed neutrality. Native markets, in line with Stripe’s Bridge, have faced community pushback over potential conflicts of interest bound to Stripes Tempo Blockchain and its ownership of the wallet provider Privy.
With Ethena suggesting her own bid, the validators face a crowded field when they go to the virtual polls in a few days.
The decision will not only determine how the USDH is structured, genius-compliant, user outcome or hypernative, but also whether Hyperliquid’s monetary layer is tied to an older stableecoin giant, a defi-native upstart or a business payment company with blockchain ambitions.
