A week after starting the contest to determine the publisher of USDH, the first native Stablecoin, Hyperliquid prepares for Sunday’s Validator vote to select the winner who has become one of the industry’s most common community decisions.
Hyperliquid, a decentralized exchange with permanent futures that launched its own Layer-1 in November 2024, processed a $300 billion trading volume with a team of 11 people in July. USDH serves as an asset awarded in the platform’s first dollars, providing traders with stable accounts and collateral options within the high lipid ecosystem.
The vote determines which companies manage the standard stub coins on the exchange and gain access to billions of stub coin flows.
The lace has already seen the twist. On Thursday, Ecena withdrew the bid and approved the new native market. Pax, Flux, Sky, Agora, Curve, Openden and Bitgo are still competing.
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Native Market
Native Market was the first team to submit a proposal for USDH held on September 5th.
To fire explicitly formed and high lipid-producing stubcoins, the group pledged to acquire HypereVM directly equally and equally equally in Mint USDH and split reserve yields between hype and ecosystem growth.
The plan relies on Bridge, Stripe’s tokenization platform, to manage the reserve. The choice gained early Valtator support, but also sparked pushbacks from competitors warning of potential conflicts with Stripe’s blockchain ambitions.
The venture is led by Hyperliquid Investor Max Fiege, former Uniswap Labs resident MC Lader and blockchain researcher Anish Agnihotri.
Current odds for the native market in Polymercu: 96%.
Pax
Also, on September 5th, Stablecoin Infrastructure Company Paxos submitted a proposal to launch Hyperliquid-First Stablecoin, designed to comply with both the USDH, the US Stablecoins Act (Genius Act) and the European Union market for the Crypto-Assets (MICA) framework.
The filing said 95% of the interest generated from the USDH reserve will be directed towards buying back Hyperliquid’s native token hype and redistribute it to validators, users and partner protocols.
“We are the only company to launch and expand multiple regulated stubcoins, including Binance USD, with over $2.5 billion and over $1 billion from PayPal USD,” Paxos said in the announcement.
Paxos has also committed to integrating USDH into the Brakerage platform already used by PayPal and Venmo.
Paxos’ Polymarket Current Odds: 4%.
Sky
On September 8, Pioneer Sky in Ethereum Decentralized Finance (DEFI) was submitted by Sky, the publisher of Decentralized Stablecoin USDS (formerly DAI). Sky’s pitch stands out by USDH pledging to make multichine natively through Layerzero, allowing the token to cycle through the network from day one.
The team also pledged to deploy a portion of its balance sheet to high lipids, providing a 4.85% return on USDH to the community, providing direct benefits to the hype buyback and support fund.
Sky’s current odds on Polymarket: under 1%.
Flux Finance
Frax Finance, the issuer of FRXUSD Stablecoin, has outlined a proposal that the federal government will issue USDH through a partnership with regulated US banks, but the banks are not named.
The plan will back USDH with one-tokenized US Treasury, ensuring complete genius behavior compliance and recycle the overall Treasury yields into the Hyperliquid ecosystem.
Frax described the approach as “something that no one else matches: bring everything back to the community.”
Current odds for Frax Finance on Polymarket: under 1%.
Agora
Also, on September 8th, Agora, publisher of AUSD Stablecoin, proposed a proposal to launch Vaneck and USDH as asset managers. The bid proposal is characterized by a commitment to direct 100% of its net revenue from reserves to hype repurchases or support funds.
Agora also sharply criticised the native market’s reliance on stripe bridges, warning that stripe’s own tempo blockchain scheme could create a high-lipid conflict of interest.
https://www.youtube.com/watch?v=6g35ewcewum
“If we abandon standard stability to stripes, which are vertically integrated publishers with distinct competition, we are all very careful about using stripes (bridges) as the publisher,” said the Agora co-founder.
Current odds at Agora’s Polymarket: under 1%.
Remaining competitors
Three final bids were submitted on September 10th, the last day of the proposal window, and have not yet been listed on Polymarket’s forecast market.
They came from Curve, an Ethereum-based distributed exchange known for its pool of stability. Openeden, a real-world asset tokenization platform. BITGO is an American crypto custodian and trust company.
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How USDH votes work
USDH’s vote marks Hyperliquid’s first major governance decision, beyond everyday asset listings. Voting occurs entirely on-chain between 10:00 and 11:00 on Sunday, determining the amount of hype tokens and the validator’s power determined by the delegator’s free shift in support.
The proposal should win two-thirds of the total stock, but it promises that high lipid basics and staking provider Kinetiq, which controls about 63% of the token, will abstain.
According to Coingecko data, the accumulation in the vote coincides with the hype, hitting a new all-time high of $57.30 on Friday.
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