Hyperliquid's validator community has selected Native Markets to issue its USDH stablecoin, concluding a competitive weeklong process that included proposals from major players like Paxos, Frax, Sky (ex-MakerDAO), Agora, and others. Native Markets, co-founded by former Uniswap Labs president MC Lader, researcher Anish Agnihotri, and early Hyperliquid backer Max Fiege, secured approximately 70% of validator votes, significantly outpacing Paxos (20%) and Ethena (3.2%).
According to a post by Fiege on X, Native Markets will begin rolling out USDH "within days" with a staged launch approach. The initial phase will feature capped mints and redemptions, followed by a USDH/USDC spot pair before full caps are lifted. USDH is designed to challenge Circle's USDC, which currently dominates Hyperliquid with nearly $6 billion in deposits, representing about 7.5% of its total supply.
Most competing bidders had proposed various yield-sharing mechanisms, including Paxos via HYPE buybacks, Frax through direct user yield, and Sky with a 4.85% savings rate plus a $25 million "Genesis Star" project. Native Markets' winning pitch instead emphasized credibility, trading experience, and validator alignment. Existing stablecoins like USDC will remain supported if they meet liquidity and HYPE staking requirements.
The decision represents a significant shift in DeFi governance, with Guy Young from Ethena Labs noting that "the process is a model for community-driven protocol governance, where emergent players can win hearts." The outcome strengthens Native Markets' position within Hyperliquid's $5.9 billion reserve ecosystem and could reshape stablecoin dynamics on the decentralized derivatives exchange.