Ethena Labs Competes for Hyperliquid’s USDH Stablecoin Mandate

Ethena Labs has entered the race to become the issuer of Hyperliquid's native stablecoin, USDH, positioning itself as a frontrunner in a highly competitive field. The decentralized exchange Hyperliquid, which processed $400 billion in perpetuals trading volume in August, boasts a stablecoin market cap exceeding $5.7 billion, making the stakes exceptionally high.

Ethena's proposal includes a revenue-sharing model, pledging to return 95% of net USDH reserve revenues to the ecosystem through HYPE token purchases, validator rewards, and ecosystem development. The firm has also committed to covering migration costs for existing USDC trading pairs and emphasized security enhancements, including the introduction of a guardian network.

The outcome of this contest will grant the winner access to one of the largest stablecoin liquidity pools in the market, underscoring the strategic importance of the mandate.