Fifth major crypto protocol pitches for role in issuing and managing USDH
Decentralized finance heavyweight Sky, formerly known as Maker, has entered the race to help Hyperliquid launch its upcoming stablecoin USDH, becoming the fifth major protocol to submit a proposal.
Sky’s Proposal to Hyperliquid
In a detailed post, Sky co-founder Rune Christensen argued that using Sky’s infrastructure would give USDH a competitive edge. He promised a yield of 4.85% on all USDH deposits, a figure he said is “significantly above the T-Bill rate.”
The proposal would also allow USDH to convert seamlessly into Sky’s USDS stablecoin, which itself offers a 4.75% yield and is designed to be natively multichain via LayerZero.
Christensen highlighted another unique feature: customization of USDH to fit different regulatory environments. He pointed to the GENIUS Act, which bans yield-paying stablecoins in the U.S., as an example of how USDH could be structured to ensure compliance.
“By using Sky to power USDH, the Hyperliquid community will gain unbeatable advantages that no other stablecoin project can offer,” Christensen wrote.
Incentives for the Hyperliquid Ecosystem
Beyond yield, Sky pledged to invest $25 million into a dedicated growth initiative designed to expand decentralized finance on Hyperliquid. The fund would issue exclusive tokens intended to attract significant liquidity and projects to the ecosystem.
The Competitive Field
Sky’s entry adds to a growing list of contenders. Other bids for USDH have already been made by Frax, Paxos, Agora, and Native Markets, each offering different approaches to stablecoin issuance and management.
The high-profile competition underscores the strategic importance of Hyperliquid’s stablecoin launch, as protocols vie to secure a long-term role in one of the fastest-growing decentralized exchanges.
VanEck’s Unusual Appeal
Adding intrigue, VanEck CEO Jan van Eck made a direct appeal to the Hyperliquid community on behalf of his son’s firm, Agora. While stressing VanEck’s willingness to support Hyperliquid’s ecosystem, he also warned: “You wouldn’t want us as a partner if we were pushed around easily.”
Hyperliquid’s validators will ultimately decide which proposal moves forward, with a vote scheduled after the platform’s next network upgrade. The decision could determine not only USDH’s future but also set a precedent for how stablecoins integrate with decentralized trading platforms.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.