Key Takeaways:
- Ethena becomes the 6th contender for Hyperliquid’s USDH mandate, proposing a USDtb-backed stablecoin with 95% of reserve revenue returned to the community and oversight via a validator “guardian network.”
- The plan includes $75M-$150M in incentives, migration costs covered, tokenized asset integrations with Securitize, and a new synthetic dollar (hUSDe) on HyperEVM.
- Ethena enters the race after USDe surpassed $12.9B in market value, solidifying its position as the world’s third-largest stablecoin issuer.
Ethena Labs has entered the race to become the issuer of Hyperliquid’s USDH stablecoin, joining Paxos, Frax, Agora, Native Markets and Sky as the sixth contender for a mandate tied to $5 billion in liquidity.
Hyperliquid, one of DeFi’s fastest-growing derivatives exchanges, recently launched a community-driven bidding process to decide who will manage USDH.
USDH proposal live on @HyperliquidX Discord.
— Ethena Ecosystem (@Ethena_Eco) September 9, 2025
The Hyperliquid community deserves proven execution in stablecoin scaling.
Should we win, we will do everything we can to ensure USDH can be as successful as USDe and USDtb.
Read more ↓https://t.co/Gqp3Ul2BlH pic.twitter.com/YiVsuLErB1
Ethena, the team behind USDe and USDtb, proposed issuing USDH fully backed by USDtb, a stablecoin linked to BlackRock’s BUIDL fund and set to launch through Anchorage Digital Bank.
Its plan pledges to return 95% of reserve revenue to the Hyperliquid community, fund the migration from USDC to USDH, and commit at least $75 million in ecosystem incentives – potentially rising to $150 million.
To enhance governance, Ethena suggested oversight through a validator “guardian network.”
It also proposed partnerships with Securitize to bring tokenized funds and equities to HyperEVM and introduce a synthetic dollar (hUSDe) with instant liquidity routes.
Other bids include Sky’s 4.85% yield model and Agora’s proposal to return 100% of revenue.
Ethena, now the world’s third-largest stablecoin issuer, has seen USDe surpass $12.9 billion in supply.
Meanwhile, Hyperliquid’s token HYPE hit an all-time high of $55.04 as competition intensified.
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