The Key Takeaways
Native Markets & Paxos are the two main contenders in Hyperliquid USDH. Who will be the winner of the USDH deal on the 14th September?
Hyperliquid’s [HYPE] USDH is a proposed stablecoin that has caused one of most aggressive bid wars within the crypto industry.
The top issuers include Ethena [ENA], Paxos, Sky [SKY] Frax (formerly Maker), and other companies are all vying to become the official partner.
But the top contender in the race, Native Markets, is a new player with no experience, which Dragonfly claims has been ‘fixed’ to win.
Slamming the process as a ‘farce,’ Dragonfly VC managing partner Haseeb Qureshi alleged The system was set up to favor Native Markets.
“Hearing from multiple bidders that none of the validators are interested in considering anyone besides Native Markets. It’s not even a serious discussion, as though there was a backroom deal already done.”
Source:
He said that Native Markets immediately offered a proposal, after Hyperliquid had made the request. This suggests the team knew about the news before it was announced.
Paxos and Native Markets are in a tight race
The contest is now a much smaller one. Paxos Native Markets
Paxos’ chances of winning increased from 47% to 50% after the revised The proposal was made, then dropped hours later. The market was still a bit sluggish. pricing Native Markets is a winner at a rate of nearly 60%.
Source: Polymarket
BlackRock, a regulated entity like most others are supporting the majority of potential issuers by promising a 95%-100% increase in HYPE values.
AMBCrypto
By the 10th September, all proposals received from potential issues should be completed. Hyperliquid Validators are to state on the 11th September their preference for a potential issuer.
Final vote The 14th September will see the validation of stakeholders by the validators. This allows them to select the validators they prefer.
Why is Hyperliquid launching the USDH now? Why now?
USDC, a cryptocurrency developed by Circle, dominates DEX (decentralized exchange) and the Chain, with USDC valued at $5.5 Billion.
However, Hyperliquid shares the $100M yield with Coinbase rival (in accordance with its agreement with Circle).
Source: Reciprocal ventures
Stablecoins should also help to manage regulatory risks. According to James EvansReciprocal Ventures’ investment analyst.
“That risk could materialize as an attack on Hyperliquid’s on/off ramps. So in addition to being a product decision, having a compliant stablecoin could be a first step to building regulatory legitimacy.”
Arthur Hayes is one of those. backed Ethena as the USDH bidder Some have highlighted that Paxos, Ethena and other stablecoins have products which would conflict with each other’s interests.
The main beneficiaries of the USDH bidding wars are HYPE owners. Altcoins have reached a record high price of $55, an increase of about 20% from the beginning bidding over the weekend.
TradingView, HYPE/USDT
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Source: ambcrypto.com
