Video | Weekly Market Analysis: The USDH Battle of Hyperliquid, the First Shot in "De-USDCization"?

Original text: TheRoundTrip

Organizer: Yuliya, PANews

In the era where cryptocurrency intersects with AI, the truly important stories are often hidden beyond the noise. To uncover these overlooked truths, PANONY has partnered with Web3.com Ventures to launch the English video program “The Round Trip.” Co-hosted by John Scianna and Cassidy Huang, this episode will focus on the USDH bidding war of Hyperliquid, exploring the proposals and final outcomes of various projects.

*Note: This video was released on September 12, and some data may differ from current dynamics or information.

TL;DR:

• Hyperliquid Launches Native Stablecoin USDH: Issued by validators' votes, the goal is to reduce reliance on USDC. Currently, about 95% of assets on Hyperliquid are denominated in USDC, approximately $5 billion. If successful, USDH could generate $220 million in annual revenue and provide a more stable guarantee for ecosystem liquidity.
• Native Markets Proposal: Led by Max Figue, with team members including former Uniswap president Mary-Catherine Lader and former Paradigm member Anish Agnihotri. The plan is to use 50% of the revenue for an aid fund and 50% to promote USDH adoption, with funds managed by BlackRock and Fidelity. Supported by Nansen and Hypuur Collective, with a winning probability of over 96% on Polymarket.
• Paxos Proposal: Collaborate with PayPal and Venmo, commit to repurchasing 95% of interest income for HYPE, integrate HYPE into mainstream payment systems, and acquire Molecular Labs. Kraken offers free deposit and withdrawal support. The goal is to expand the Hyperliquid community by leveraging PayPal's 400 million users.
• Competitive Landscape: In addition to Native Markets and Paxos, Frax, Sky, Agora, Ethena, and others are participating. (Ethena chose to withdraw last Thursday.) Circle has opted not to compete and continues to promote USDC. In governance, voting is largely symbolic, representing the identity of the official issuer, but it will not directly change the existing liquidity advantages of USDC. (Currently, Native Markets has won the Hyperliquid stablecoin USDH bidding and plans to enter the testing phase “within a few days.”)
• Industry Significance: The “Genius Act” opens up the stablecoin market, leading to fairer competition. USDH adopts validator governance instead of centralized control, which is seen as a more transparent and decentralized new model. It may become a new paradigm for liquidity management and DeFi integration, marking a new phase for stablecoins characterized by ecological dominance and compliance-driven growth.