Hyperliquid Validators to Decide on USDH Stablecoin Ticker

Hyperliquid, a decentralized exchange and Layer-1 blockchain, is preparing for a governance vote where its validators will select a team to assign the USDH ticker for a new native stablecoin. This process includes a proposal submission deadline, voter participation, and emphasizes that multiple stablecoins will coexist on the Hyperliquid network.

Key Takeaways

Hyperliquid will hold a governance vote on September 14 to decide on the USDH stablecoin ticker.
Teams interested in the USDH designation must submit proposals by September 10.
Validators will publicly express their preferred option for USDH by September 11.
The vote is solely for the ticker assignment, allowing multiple stablecoins on the network.
Four teams have already submitted proposals, including Paxos Labs and Frax Finance.
HYPE, the native cryptocurrency of Hyperliquid, has seen a price increase of nearly 12%.

Hyperliquid validators to vote on USDH stablecoin ticker - 1

Main Content

Hyperliquid, a decentralized exchange and Layer-1 blockchain, is gearing up to conduct a governance vote. During this vote, the protocol's validators will determine which team will be given the USDH ticker, which is intended for a new native stablecoin on the network.

In a recent announcement made on their official Discord channel, the Hyperliquid team confirmed that the voting process will happen on September 14, between 10:00 and 11:00 UTC. Before this, teams competing for the USDH designation must submit their proposals by September 10. From September 11, validators are expected to publicly declare their choices to allow users time to stake their votes with a validator of their liking.

“Voting will be determined by stake. Validators will cast their votes by submitting the address linked to the team they are backing,” stated the Hyperliquid team.

Additionally, they clarified that this vote is only about assigning the ticker and does not provide the selected issuer with any exclusive rights or special privileges. “Multiple stablecoins will remain available on the Hyperliquid blockchain, and new stablecoin teams may still join the Hyperliquid ecosystem. USDH will be just one of many stablecoins,” they added.

Hyperliquid announced plans to introduce its own stablecoin on September 5, emphasizing that it will serve as a “Hyperliquid-first, Hyperliquid-aligned, and compliant USD stablecoin.” This initiative is part of the protocol's significant update aimed at enhancing liquidity and reducing friction for users. USDH is envisioned as an alternative to bridged assets like USDC, which currently represents 95% of the total $5.6 billion stablecoin supply on the Hyperliquid network, according to data from DefiLama.

Entities interested in issuing USDH have been invited to submit proposals, with the selected group being chosen through a vote from on-chain validators. This selection will heavily depend on the stake-weighted support from the network's validators.

As of September 8, four teams—Paxos Labs, Frax Finance, Agora, and a Hyperliquid-native group named Native Markets—have put forward proposals. Each has outlined different models for backing and distributing the forthcoming stablecoin. Notably, Agora's proposal suggests plans to allocate net revenue from its cash and U.S. Treasury reserves to Hyperliquid's Assistance Fund or for dedicated HYPE token buybacks.

Since the announcement on Friday, HYPE (HYPE), the native cryptocurrency of Hyperliquid, has surged nearly 12%, trading at just 2.3% below its all-time high of $50.99 at the time of this report. Alongside these stablecoin developments, much of this growth is attributed to the platform's rising prominence as a leading decentralized exchange (DEX), especially in the realm of perpetual futures trading. According to DefiLama, the platform recorded $398 billion in perpetual derivatives trading volume and $20 billion in spot trades in the previous month.

Hyperliquid has also positioned itself as the eighth-largest decentralized finance (DeFi) protocol, based on total value locked (TVL) metrics.