The launch of Hyperliquid’s Stablecoin has evolved into one of the hottest competitions Defi has seen over the years, hoping that agencies and Defi protocols will win Validators.
As high lipids aim to develop in-house stubcoins, some of the largest protocols of Decentralized Finance (DEFI) are seeking governance voters to secure USDH tickers and manage ecosystem stablecoins.
However, Haseeb Qureshi, managing partner of Crypto Investment Firm Dragonfly, claims that the “backroom deal” has already ended.
“We’ve heard from multiple bidders that they’re not interested in considering people outside of the Balcon market. There’s no even serious discussion, as if backroom deals were already underway. The native market proposal was announced shortly after the USDH RFP was announced.”
CL, anonymous crypto trading cat and Hypurrscan spokesman (managed 15% of voting power), verbal support for the native market based on Haseeb’s post. However, Nansen founder Alex Svanevik, who runs the largest high lipid verification device at Hypurr Collective, strongly opposed Qureshi’s accusations.
Svanevik said, “It’s wrong to the facts… Our team has put a lot of effort into finding the best alternative to HL to review the proposal and talk to the bidders. I’m literally receiving non-stop DMS and calls from USDH bidders.
Native Market
The race to launch USDH last week heated up, and formal proposals came to light by Defi Heavyweights such as Sky (formerly the manufacturer), Ethena, Paxos and Agora. It should be noted that Dragonfly has been invested in both Agora and Ethena, who have begun the USDH proposal and compete for the right to launch Hyperliquid’s Stablecoin.
Haseeb’s accusations are directed at natural market proposals, and Stablecoin calls for the native casting of HypereVM, but remains compliant with the Genius Act and inherits Fiat Rails, the Issuer Bridge, a subsidiary of Stripe.
Stripe announced its upcoming permit layer 1 Tempo last week, but it could simplify the process of extending Fiat to high lipids that currently require Onchain Bridge Solutions.
The native market team includes Max Feezy, who previously was at Likkitty and Burnbridge, and MC Lader, former president and COO of UNISWAP Labs.
Unlike other proposals that propose to use the majority of USDH revenue to buy back hype, Native Markets proposes 50% of the reserve yields to go to the Hyperglycemia Support Fund for hype buybacks, while the other 50% have been reinvested in USDH’s growth.
Ecena vs Sky vs Pax
Paxos swooped late overnight, including a partnership with PayPal, where PayPal has listed hype on Venmo, free and off-ramps, ecological incentives $20 million, and a “AF first incentive structure” that does not earn a fee until Paxos reaches TVLIMESTONES.
In SAGA’s latest development, Paxos co-founder Bhau Kotecha has announced that he is working with Paxos and the native market.
This was inspired by a tweet from investor Mike Dudas. He said, “Isn’t it an obvious $USDH solution for simply integrating the native market with the Paxos proposal? Front native market (HL native, deep ecosystem ties and roots).
At the same time, USDT0, a cross-chain variation of Tether’s USDT Stablecoin, announced that it would not throw a hat in the ring.
In addition to the formal suggestions, these protocols are also appealing to the high lipid community. Agora’s proposal was accompanied by the public address of X for Yang Van Eck, CEO of the $130 billion Vanneck Investment Company, but Esena took a more humorous approach by parodiing Eminem’s poem from the song “Stan,” with a tongue note to Jeff Yang, founder of High Reconciliation.
Sky’s proposal in particular attracted attention after co-founder Rune Christiansen announced it last night with high lipid discord. Sky’s USDH proposal highlighted the successful track record of Sky and Dai, but said it would receive 4.85% APR on all USDH issued with high lipids and high lipids. Sky could potentially roll out a $8 billion balance sheet for high liquids and a $25 million grant to create “high-sized stars.”
Synthetic Dollar Protocol Ethena fought back on September 9th with its own proposal. This assumes USDH has backed 100% by USDTB, Ethena’s Stablecoin, backed by BlackRock’s Buidl fund. Ecena’s proposal also vowed to return “at least 95%” of USDH’s reserve revenue to a high lipid ecosystem in the form of hype purchases and “a minimum of $75 million in a mix of cash and token incentives to grow the HIP-3 frontend.”
Sky and Ethena will issue the third and fourth largest Stablecoins by market capitalization. Ethena’s USDE is worth nearly $13 billion, while Sky’s Dai is worth around $5 billion. However, both combined do not stand close to market leaders, with USDC’s market capitalization of $72 billion and USDT of $169 billion.
While traditional institutions and debt protocols continue to raise anti-Anti, HypereVM Builders are focusing on future missions. “The actual work of this whole USDH setup will start at startup as there is a real problem with expanding to $5 billion,” Charlie, a contributor to Felix Protocol, told Defiant.
He referenced a recent post on X and made it clear that in order for USDH to have a real impact on high lipids, we need to focus on more than just rebates or hype buybacks. “USDT/USDE/USDC will now play this incentive game. [We] For these USDH proposals to be more interesting, we need to look at a clearer path that will shake up the USDC’s control. ”
Tether’s USDT0 subsidiary has withdrawn its name from today’s race, but it is unclear whether its official rules are tied up, and it is unclear whether Circle is silent on previous issues.
High liquid growth
The growth of Perpetuals Exchange and Layer 1 was a recurring theme in 2025.
High lipids account for more than 35% of all crypto revenue today, generating $1.28 billion a year, with 99% of that revenue going to the High lipid Support Fund to buy back the hype tokens.
HypereVM, Hyperliquid’s layer 1 blockchain, has been on a consistent uptrend since Mainnet’s launch in February, and now it’s the eighth largest blockchain in total lock (TVL) at $2.6 billion, after starting at $400 million.
Meanwhile, the hype token has been one of Crypto’s top-performing assets since its launch in November 2024. The token debuted with a full dilution rating of around $3 billion, surged more than 1700% since its launch, reaching its all-time high of $55.7.