The digital asset Hyperliquid governance token, identified as HYPE, experienced a surge in value, exceeding $50 during trading activity in Asia. This increase is primarily attributed to emerging proposals aimed at managing the decentralized exchange’s
planned stablecoin, USDH.
Data obtained by *CryptoSlate* indicates that the token’s value appreciated by over 7% in the preceding 24-hour period, reaching a price of $50.08. This figure positions it closely to its
August high point of $51.
This positive trend signifies growing confidence in Hyperliquid’s strategy concerning its stablecoin. This approach has garnered considerable interest from well-established entities in the digital currency space.
Paxos Bids for USDH Management
Paxos, a seasoned stablecoin operator, has formally entered the competition with a bid spearheaded by its novel division, Paxos Labs.
This division, established in June,
stated its commitment to ensuring USDH’s compliance with regulatory frameworks governing stablecoins in both Europe and the United States. This includes deploying the token across Hyperliquid’s two distinct chains: HyperEVM and HyperCore.
Furthermore, they conveyed that USDH’s reserves would be composed of premium-quality Treasury Bills, Repos, and USDG assets.
The proposal also included an appealing revenue-sharing structure.
According to Paxos’ plan, a substantial 95% of the interest accrued from USDH reserves would be allocated towards repurchasing HYPE tokens. This redistribution would then be specifically targeted for ecosystem partners and users.
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Furthermore, Paxos has committed to including HYPE on its brokerage infrastructure, which is currently utilized for trading on platforms like PayPal, Venmo, MercadoLibre, Nubank, and Interactive Brokers.
Bhaumik Kotecha, co-founder of Paxos Labs,
mentioned that the company intends to maintain an open USDH infrastructure for developers and payment providers, rather than restricting it to exclusive partnerships. He believes that this approach will optimize USDH’s liquidity and cost-effectiveness across various on-ramps, DeFi protocols, and fintech applications.
Agora Forms Coalition
Stablecoin developer
Agora, recognized for launching the
VanEck-backed AUSD, has also submitted a competing proposal.
Their strategy involves a coalition comprising Rain for card and fiat processing, LayerZero for facilitating cross-chain functionality, and Moonpay for enhancing retail accessibility upon launch.
Agora has pledged to redirect all net revenues generated from USDH operations back to Hyperliquid, either through its Assistance Fund or through open-market purchases of HYPE.
Nick van Eck, CEO of Agora,
emphasized that USDH would be integrated natively within Hyperliquid, rather than being repurposed from another ecosystem. He also characterized Agora as a neutral issuer, devoid of its own chain or brokerage, thus ensuring it wouldn’t compete directly with its partners.