Hyperliquid has announced that the launch of its native stablecoin USDH will be governed by an on-chain validator voting system, marking a significant step in decentralized governance. Teams must submit deployment proposals, including wallet addresses, via Discord for validator review. The chosen team will then need to win a gas auction to execute the deployment, ensuring community alignment and transparency.
This process coincides with a major platform upgrade that slashes taker fees on spot quote-to-quote pairs by up to 80%, alongside increased maker rebates and volume incentives. These changes aim to boost liquidity, reduce trading friction, and attract new participants. Hyperliquid also plans to introduce permissionless spot assets in future phases, supported by validator staking and slashing mechanisms.
The USDH launch could significantly impact existing stablecoins on the platform, particularly USDC, which currently holds $5.5 billion in deposits. Omar Kanji of Dragonfly estimates a full migration to USDH could redirect $220 million in annualized revenue to HYPE holders, based on a 4% yield assumption, while reducing USDC's outstanding supply by 7%.
HYPE, Hyperliquid's governance token, has already reacted positively, rising nearly 3% in 24 hours and 22% over the past month, reaching a record high of $51. The platform's monthly trading volume hit an all-time high of $400 billion in August, capturing over 60% market share.