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MakerDAO, entered the heated competition to issue Hyperliquid’s USDH stablecoin, becoming the fifth major protocol alongside Paxos, Frax, Agora, and Native Markets. This intensifying bidding war underscores the growing importance of stablecoins in decentralized finance (DeFi).
Sky’s Ambitious Proposal
Sky’s bid, led by co-founder Rune Christensen, offers $2.2 billion in USDC liquidity, a 4.85% yield surpassing U.S. Treasury bills, and a $25 million “Hyperliquid Star” fund to boost DeFi projects on Hyperliquid (). With $8 billion backing its USDS and DAI stablecoins, Sky promises GENIUS Act compliance and cross-chain support via LayerZero, enhancing USDH’s accessibility and reliability ().
Why USDH Matters
Hyperliquid, a decentralized exchange handling $400 billion in monthly trading volume, aims to launch USDH as a “Hyperliquid-first” stablecoin. The validator vote on September 14, 2025, will decide the issuer, with proposals emphasizing security, liquidity, and user incentives. Sky’s seven-year track record and B- S&P credit rating position it as a strong contender ().
Market Implications
Sky’s entry could drive USDH adoption, offering seamless trading and high yields. However, controversies, like allegations of Native Markets’ head start, highlight the competitive stakes (). The winning bid will shape Hyperliquid’s $5.5 billion USDC deposit ecosystem.
Sky’s bid for USDH intensifies the stablecoin showdown, promising enhanced liquidity and innovation. As Hyperliquid’s validator vote nears, investors should monitor this race for its impact on DeFi growth.
