Sky Joins Bidding for Hyperliquid's USDH Stablecoin
Sky Enters the Fray for Hyperliquid's Stablecoin
Crypto protocol Sky, formerly known as Maker, has thrown its hat into the ring, becoming the fifth project vying to support decentralized perps exchange Hyperliquid in launching its stablecoin, USDH.
Sky co-founder Rune Christensen unveiled the proposal, showcasing Sky's resources and promising a customizable token with a yield aimed at rivaling US Treasury bills. This is a major move in the competitive stablecoin landscape.
"By using Sky to power USDH, the Hyperliquid community will gain unbeatable advantages that no other stablecoin project can offer," Christensen stated in his pitch.
Sky, creator of USDS and DAI (the fourth and fifth-largest stablecoins with a combined value of $12.5 billion), joins a growing list of contenders for the USDH project.
Sky's USDH Proposal: Yield and Regulatory Flexibility
Christensen's proposal highlights a 4.85% return on all USDH held on the Hyperliquid platform, which he claims is "significantly above the T-Bill rate."
Key features of Sky's proposal include:
- Conversion to a version of USDS offering a 4.75% yield.
- Native multichain functionality via LayerZero.
- Customization options, including compliance with the US GENIUS Act, which restricts yield-bearing stablecoins.
Sky is also committing $25 million to a project focused on autonomously growing DeFi on Hyperliquid, potentially attracting billions to the protocol through exclusive tokens.
The Competition Heats Up
Sky's bid joins existing proposals from:
- Native Markets (backed by Stripe's Bridge).
- Frax.
- Paxos.
- Agora (supported by MoonPay).
VanEck CEO Makes His Case
Jan van Eck, CEO of VanEck, publicly appealed to the Hyperliquid community to support Agora's bid, co-founded by his son Nick van Eck. However, he cautioned against what he perceived as unfair competitive tactics.
Hyperliquid validators will vote on their preferred proposal following the next network upgrade. The selection of a secure and compliant stablecoin partner is crucial for Hyperliquid’s continued growth. Platforms like Codeum offer security audits and KYC/AML services that can help ensure the integrity of new stablecoin projects and protect users.