The tweet was deleted by the author.
But we saved everything 🙂.
Sky enters Race to launch USDH stablecoin on Hyperliquid
The decentralized exchange Hyperliquid has ignited one of the most competitive battles in the stablecoin sector with its plan to launch USDH, a native dollar-pegged asset designed to redistribute yield throughout its ecosystem.
The initiative has attracted bids from several heavyweight players including Paxos, Agora, Frax, and Stripe-linked ventures. Now, Sky—formerly known as MakerDAO and one of the most established names in decentralized finance—has formally entered the contest with an ambitious proposal.
Hyperliquid, which recently processed nearly $400 billion in trading volume, aims to transform stablecoin economics by sharing revenues generated from reserves. Rather than concentrating yield in issuers such as Circle, which earns an estimated $200 million annually from USDC deposits on the platform, Hyperliquid’s plan would channel earnings toward validators, liquidity incentives, and HYPE token buybacks. Analysts suggest the model could redistribute over $1 billion per year, setting the stage for a reshaped stablecoin market.
Sky’s proposal and advantages
Sky’s offer distinguishes itself by combining deep liquidity, regulatory credibility, and ecosystem growth strategies. The project has more than $13 billion in diversified collateral backing its operations and governs two of the world’s largest stablecoins—DAI and USDS—with a combined value exceeding $12.5 billion. Under its USDH proposal, Hyperliquid users would gain access to $2.2 billion in instant USDC redemption liquidity through the Peg Stability Module, ensuring seamless off-chain conversions.
A key feature of Sky’s plan is a 4.85% yield on all USDH deployed on Hyperliquid—significantly higher than U.S. Treasury bill rates. This income would be dedicated to HYPE buybacks and ecosystem assistance funds. Additionally, USDH would be multichain-enabled via LayerZero and offer conversion with yield-bearing sUSDS, giving holders exposure to a 4.75% return. Sky has also pledged $25 million to launch a “Hyperliquid Star,” an autonomous initiative to bootstrap decentralized finance growth on the exchange.
Governance, compliance, and long-term vision
Beyond yield and liquidity, Sky emphasizes governance flexibility and compliance readiness. The Hyperliquid community would have the option to tailor USDH for regulatory frameworks such as the U.S. GENIUS Act or the EU’s MiCA rules. Sky further underscores its long-standing risk management framework, modeled after Basel III banking standards, and its recent S&P credit rating, marking a rare step for a decentralized stablecoin protocol.
The decision on which proposal secures the USDH ticker lies with Hyperliquid validators, with an on-chain vote scheduled for September 14, 2025. Regardless of the outcome, Sky has committed to expanding its integration with Hyperliquid, citing strong alignment between both platforms’ focus on sustainable profits and decentralized infrastructure.
Read also: Ethena Labs bets on Based to scale USDe adoption
This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.
Subscribe to TU news
Did you like the article?
Weekly Top Bonuses
Top News
Top 5 companies for you
United States
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
Live News
