Ethena Labs Proposes to Issue Hyperliquid’s USDH Stablecoin
- Ethena Labs submitted a proposal on Sept. 9 to issue Hyperliquid’s native stablecoin, USDH, backed entirely by USDtb.
- USDtb is supported by BlackRock’s BUIDL fund and Anchorage Digital.
- Ethena plans to return 95% of net revenue from USDH reserves to the Hyperliquid community through HYPE token purchases.
- Hyperliquid aims to replace $5.5 billion in USDC deposits as the primary settlement currency on its decentralized exchange.
- The protocol recorded nearly $1.3 billion in estimated annualized revenue and achieved a monthly trading volume of $405.8 billion in August.
The selection process for USDH involves multiple proposals with varying backing methods and governance structures, highlighting a competitive landscape in stablecoin issuance.
Ethena’s proposal emphasizes institutional partnerships and aims for significant community benefits, potentially generating an additional $220 million in annualized revenue for HYPE holders based on estimates.(Source)
