The competition for Hyperliquid stablecoin USDH is heating up: the hidden doubts of "insider deals" behind the fierce competition.

The decentralized derivatives exchange Hyperliquid is vigorously advancing the issuance of its own stablecoin USDH to eliminate reliance on Circle's USDC. This move has sparked intense competition among major players in the encryption field, including Ethena Labs, Paxos, and Frax Finance. However, as the voting day on September 14 approaches, industry figures such as Dragonfly partner Haseeb Qureshi have publicly questioned the fairness of the process, suggesting that this bidding may be a farce "tailored" for specific entities, casting a shadow over this high-stakes competition.

Hyperliquid Launches USDH: Breaking the Dependence on USDC

Strategic Objective: The core purpose of Hyperliquid's launch of USDH is to reduce dependence on Circle's USDC stablecoin. Currently, USDC accounts for the vast majority of Hyperliquid's $5.5 billion in reserves, generating approximately $200 million in revenue for Circle each year.

Self-built ecosystem: By creating USDH, Hyperliquid can keep most of its revenue within its own ecosystem, while gaining greater control over liquidity and reserve management, and allowing users to play a more direct role in platform governance.

The Battle of the Heroes: Proposals from Various Players

The bidding attracted numerous heavyweight participants, each company presenting unique strategies:

Ethena Labs: Proposed that USDH is fully supported by the stablecoin USDtb, which is linked to its partnership with the BlackRock BUIDL Fund, and committed to returning 95% of the net profit to the Hyperliquid ecosystem, while bearing the migration costs of the existing USDC trading pairs. Analysts believe that this proposal stands out due to its innovation.

Paxos: As the issuer of PayPal's stablecoin, Paxos focuses on compliance and plans to integrate PayPal and Venmo payment networks into the USDH ecosystem.

Frax Finance: Plans to peg USDH to its native token frxUSD and US Treasury bonds, with all bond yields being directly delivered to Hyperliquid users, emphasizing the advantages of its DeFi mechanism.

Sky Ecosystem: Led by the former MakerDAO team, proposes to issue USDH through a decentralized model, offering a 4.85% yield, and has an $8 billion balance sheet as support.

Agora and Native Markets: Both emphasize deep consistency with the Hyperliquid ecosystem and propose different revenue distribution models, although Native Markets lacks experience in stablecoin issuance, which adds uncertainty to its proposal.

Doubts about Process Fairness: Rumors of Pre-arrangement Emerge

Internal news: Haseeb Qureshi, a partner at Dragonfly, publicly questioned the fairness of this USDH bidding. He pointed out that the proposal from Native Markets was almost immediately released after the USDH bidding announcement, which suggests they may have received the information in advance.

The "farce" dispute: Qureshi believes that the bidding process this time may be a "farce" tailored specifically for Native Markets. He revealed that more than half of the bidders privately agree with this view but remain silent to avoid being excluded.

Conclusion

The launch of Hyperliquid's own stablecoin strategy is significant, representing the ambition of decentralized finance to break free from reliance on centralized assets. However, this highly publicized bidding war also exposes the challenges that decentralized governance may face in practice, namely how to balance efficiency and fairness. The final voting results will not only determine who will win the issuance rights of USDH but will also serve as a severe test of Hyperliquid's governance credibility.