Compliance and yield strategies take center stage as voting begins among Hyperliquid validators
The contest to manage Hyperliquid’s planned native stablecoin, USDH, has drawn significant attention as OpenEden and BitGo became the final entrants, rounding the total number of bidders to eight. Voting began on Thursday and will continue until Sunday, with validators set to decide who will oversee the platform’s $5.9 billion reserve, 95.56% of which is currently held in USDC.
OpenEden pledges yield distribution
OpenEden’s proposal emphasizes maximizing returns for the Hyperliquid community. The firm has pledged to distribute all yield generated from the USDH reserves back into the ecosystem, including buybacks of Hyperliquid’s HYPE token. Additionally, revenue from minting and redeeming USDH would be directed toward purchasing and redistributing HYPE to validators.
The company has also promised 3% of its native EDEN token supply as added incentives, with the possibility of increasing that allocation in the future. Custody of the reserves would be handled by The Bank of New York Mellon, with adoption supported by partnerships including Chainlink, AEON Pay and Monarq Asset Management.
BitGo highlights regulatory strength
BitGo is leveraging its regulatory compliance record as its main advantage. The infrastructure provider plans to back USDH with U.S. dollar liquid assets, bank deposits and short-term treasury bills. The yield generated would be used to buy and stake HYPE tokens, with BitGo charging a 0.3% fee.
The company also stressed its global regulatory reach, citing licenses from Dubai, Singapore, Denmark, New York and Germany, giving it credibility as a stablecoin custodian. BitGo will also employ Chainlink’s cross-chain interoperability protocol to ensure seamless transfers.
Native Markets leads early vote count
At the time of writing, Native Markets leads with 33.73% of delegate support, followed by Paxos at 11.52%. However, nearly 46.5% of votes remain unassigned, leaving room for a major shift before Sunday’s deadline.
Crypto fund manager Haseeb Qureshi raised concerns about the process, suggesting, “It’s not even a serious discussion, as though there was a backroom deal already done.” However, Nansen CEO Alex Svanevik countered that the bidding has been competitive and open.
With billions in reserves at stake, the outcome of this vote will decide not just the future of USDH, but also the credibility of Hyperliquid’s governance model.
Disclaimer
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