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As competition intensifies ahead of Hyperliquid’s Sept. 14 validator vote on its USDH stablecoin, Sky, Bastion, and Native Markets have submitted proposals to provide infrastructure, joining earlier bidders Frax Finance, Paxos, and Agora.
Sky, Bastion, and Native Markets Enter Hyperliquid’s USDH Stablecoin Infrastructure Race
Sky, formerly known as Makerdao, proposed a decentralized issuance model for USDH that includes a 4.85% yield on all holdings, backed by its $8 billion-plus balance sheet and diversified collateral. Sky founder Rune Christensen highlighted access to $2.2 billion in USDC for instant off-chain redemptions and native multichain support via Layerzero. Sky said it is committed to deploying $25 million to create a dedicated “Hyperliquid Star,” an autonomous project aimed at growing DeFi total value locked (TVL) on the platform, potentially attracting billions in liquidity.
The proposal emphasizes Sky’s seven-year security track record without losses and its S&P B- credit rating, the only one among stablecoin protocols. It allows customization for compliance with the U.S. GENIUS Act and pledges to move its $250 million annual buyback system to Hyperliquid, boosting HYPE token liquidity. All yields would fund HYPE buybacks or the Hyperliquid Assistance Fund.
Bastion, a platform focused on regulated stablecoin issuance, outlined a neutral infrastructure built for scale in payments, exchanges, and trading. The bid stresses regulatory licensing across jurisdictions to minimize freezing risks and enable seamless fiat on-ramps. Bastion aims to assemble partners for incentives and global compliance, positioning USDH as a public good without competing chain interests.
Details on revenue sharing remain unspecified, but the proposal avoids conflicts by focusing on strong, permissionless access. Bastion’s team indicated the bid would prioritize Hyperliquid’s ecosystem health over external rake.
Native Markets, led by Max Fiege through Bridge infrastructure, proposed globally compliant issuance with direct minting on HyperEVM and Hypercore transfers enabled at launch. The bid includes Stripe-linked fiat rails for on- and off-ramps, ensuring GENIUS Act compatibility from day one.
A “meaningful share” of reserve proceeds would flow to the Assistance Fund, with reserves designed to recirculate into Hyperliquid rather than external entities. The team, including former Uniswap executives, emphasized alignment with Hyperliquid’s mechanics for long-term growth.
Polymarket odds reflect community sentiment with Native Markets at 65%, Sky at 17% and Paxos at 19%, while Frax and Agora hover below 1%. Bastion does not appear in Polymarket’s listed outcomes.
Bids were due Sept. 10, with validators set to decide Sept. 14. Hyperliquid currently holds $5.7 billion in stablecoins, mostly USDC, making USDH a potential revenue driver through reduced fees and captured yields.