Sky Proposes USDH Stablecoin with $8B Backing and 4.85% Yield for Hyperliquid

Sky, the rebranded entity formerly known as MakerDAO, has entered the competition to issue Hyperliquid's native stablecoin, USDH. Leveraging an $8 billion balance sheet and a B- S&P credit rating—the first for a DeFi protocol—Sky's proposal stands out in a crowded field. The stablecoin WOULD offer a 4.85% yield on Hyperliquid, surpassing Treasury bill rates, with revenue directed toward HYPE token buybacks and an Assistance Fund.

Hyperliquid, which processed nearly $400 billion in trading volume last month, holds $5.5 billion in USDC deposits, making the USDH issuance contract one of DeFi's most lucrative opportunities. Sky's pitch includes $2.2 billion in instant redemption liquidity via its Peg Stability Module, a feature aimed at institutional traders needing large-scale flexibility. Validators will vote on September 14, with the Hyperliquid Foundation abstaining.

Beyond financial mechanics, Sky plans to inject $25 million into a "Hyperliquid Genesis Star" initiative, mirroring its successful Spark token farm that attracted over $1 billion in TVL. This MOVE could catalyze DeFi activity on Hyperliquid and draw billions in additional deposits.