The Ethena team, known for its USDe synthetic dollar protocol, has officially withdrawn its bid to issue Hyperliquid's native stablecoin, USDH. This decision came after direct discussions with Hyperliquid community members and validators, who expressed concerns about Ethena not being a native project on the Hyperliquid platform.
In a statement on X, Ethena Labs founder Guy Young acknowledged the community feedback and congratulated rival bidder Native Markets, stating: "While some are complaining about their lack of credibility (Native Markets) I think their success here perfectly embodies everything which is so special about Hyperliquid and their community. It is a level playing field where emergent players can win the hearts of the community and are given a fair shot at succeeding."
This withdrawal dramatically shifts the competitive landscape. According to Polymarket prediction markets, Native Markets now has a 92% chance of winning the USDH issuance rights, with Paxos trailing at approximately 7%. The decision underscores the importance of community alignment in decentralized finance ecosystems and highlights Hyperliquid's commitment to supporting native projects within its platform.