Hyperliquid’s USDH Stablecoin Proposal Sparks Controversy

Hyperliquid, a decentralized exchange with its own layer-1 network, has solicited proposals for teams to launch a USDH stablecoin. The initiative aims to create a "Hyperliquid-first" and "Hyperliquid-aligned" stablecoin, with validators voting on submissions over five days. The winning team will secure the USDH ticker once quorum is reached.

Criticism has emerged from an established Hyperliquid stablecoin protocol, which claims unfair treatment after being previously blocked from using the USDH ticker. The timing of the announcement has also raised eyebrows, with some questioning the process's transparency.

Three proposals have surfaced in Hyperliquid's Discord channel. One was largely dismissed by the community, another accused of having an unfair advantage, and a third—submitted by Native Markets just an hour after the announcement—has stirred controversy.