Ethena Labs Withdraws from USDH Bid as Native Markets Gains Traction
- Ethena Labs has officially withdrawn its bid to issue Hyperliquid’s USDH stablecoin following community feedback.
- Native Markets is currently favored to win the validator vote, with traders on Polymarket giving it a 91% chance of success.
- The USDH vote will take place on September 14, with a $5.9 billion stablecoin reserve at stake, primarily held in USDC pairs.
- Other contenders for the bid include Paxos, Frax, and Agora, while Arthur Hayes has increased his stake by purchasing additional ENA tokens.
- Despite exiting the race for USDH, Ethena Labs plans to focus on developing new products within the Hyperliquid ecosystem.
The Hyperliquid Foundation aims for a transparent selection process by aligning its validator vote with community support rather than direct influence from the foundation itself. This approach underscores the importance of grassroots backing in determining future leadership within the ecosystem.
As Native Markets leads with strong community support and a projected win probability of over90%, this outcome could significantly shape Hyperliquid’s growth trajectory moving forward.
