Ethena Withdraws USDH Bid On Hyperliquid, Pledges To Focus On Product Innovation And Roadmap Execution
In Brief
Ethena has withdrawn its bid to issue Hyperliquid’s USDH stablecoin, while Native Markets emerges as the frontrunner, and all parties continue focusing on product development and innovation within the ecosystem.
Guy Young, founder of a decentralized finance (DeFi) protocol developing a synthetic dollar on Ethereum called USDe, Ethena Labs announced on social media platform X that the project withdrew its bid to issue Hyperliquid’s USDH stablecoin, conceding to concerns raised in direct discussions with community members and validators.
He noted that following discussions with community members and validators, several concerns were acknowledged. These included the fact that Ethena is not a native Hyperliquid team, that the project has additional product lines beyond USDH, and that its ambitions extend beyond partnering with a single exchange. The feedback was accepted, and in response, the proposal will be withdrawn, allowing validators to signal support elsewhere.
Looking ahead, Ethena intends to continue pursuing its roadmap, focusing on product development rather than solely pursuing financial yield. Planned initiatives include hUSDe native synthetic dollars, USDe-enabled savings and card products, hedging flows on Hyperliquid, and expanding HIP-3 market designs with features such as reward-bearing trading collateral, modular prime broking, and perpetual equity swaps. The team remains committed to executing its vision and competing on product innovation regardless of the outcome of the current proposal.
Native Markets Emerges As Leading Contender In Hyperliquid’s USDH Stablecoin Selection Amid Competitive Bids
The recent USDH selection process has generated attention and debate, with some observers noting that potential issuers such as Ethena and Paxos, which has a partnership with PayPal, presented compelling proposals. Paxos, a stablecoin issuer founded in 2018, proposed compliance with MiCA and the GENIUS Act, native integration on both HyperEVM and HyperCore, and a plan to allocate 95% of its reserve yield to HYPE buybacks.
Agora, a startup founded by Nick VanEck that recently raised $50 million in a Series A round and introduced a white-labeled stablecoin product, pledged to share all net revenue with Hyperliquid.
According to Polymarket, Native Markets is currently the frontrunner to secure the bid for Hyperliquid’s USDH stablecoin, with bettors assigning roughly 92% odds to the startup. Native Markets was co-founded by Max Fiege, a well-known early advocate, investor, and contributor to the Hyperliquid ecosystem, and early voting trends on Thursday offer an initial view of which issuer may ultimately be selected.
The developments follow Hyperliquid’s decision to exclude staked HYPE tokens from validator weighting in the USDH vote, effectively giving community token holders greater influence over the outcome.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
