Sky (MakerDAO) Charges Into Hyperliquid’s USDH Stablecoin Arena - The Race Heats Up!

The stablecoin wars just got another heavyweight contender.

MakerDAO's Sky protocol throws its hat into Hyperliquid's USDH issuance ring—adding serious DeFi credibility to the growing stablecoin competition. This isn't just another pegged asset; it's a strategic move that could reshape liquidity dynamics across chains.

Why This Matters Now

Sky brings Maker's battle-tested stability mechanisms to Hyperliquid's perpetual trading ecosystem. That means deeper liquidity, tighter spreads, and more robust arbitrage opportunities for traders who've grown tired of traditional finance's sluggish settlement times.

Institutional-grade DeFi meets leveraged trading—without the usual counterparty risks that make traditional finance types nervous (though let's be real, they'll still find something to worry about).

The Bottom Line

More issuers mean more competition—and better rates for users. Sky's entry signals that USDH isn't just another stablecoin experiment; it's becoming a legitimate liquidity backbone for decentralized derivatives.

Because nothing says 'financial revolution' like watching TradFi banks finally sweat over their 0.01% yield offerings.

The Competition is Tough 

As a leading decentralized perpetual exchange, Hyperliquid has over $5.5 billion in USDC deposits, which is about 7.5% of the stablecoin’s total supply. 

Apart from Sky, four other protocols in the race have also pushed forward favorable terms for issuing USDH stablecoin. These are Paxos, Frax, Agora, and Native Markets. Paxos has promised 95% of reserved earnings and zero fees for USDC migration, while Agora has pledged 100% of net revenue for HYPE buybacks. 

Meanwhile, Native Markets, which was the first protocol to send a proposal for USDH, promises a share of the reserve proceeds to Hyperliquid’s Assistance Fund, minting within the ecosystem, and following the rules. FRAX Finance is a community-based model that gives users back 100% of the treasury’s profits. This arrangement is different from Sky’s revenue-sharing model.

An on-chain vote on September 14, 2025, will decide the outcome for the Hyperliquid community. The vote is one of the most closely watched developments in DeFi this year because whichever protocol wins the deal will have a huge amount of power in the stablecoin market.

Also Read: Stripe Faces Competition for Hyperliquid’s USDH Stablecoin