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Ethena Labs Withdraws from USDH Stablecoin Bid Amid Ecosystem Concerns
Ethena Labs Withdraws from USDH Stablecoin Bid Amid Ecosystem Concerns
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BTCCSquare news:
Ethena Labs has abandoned its bid to manage Hyperliquid's USDH stablecoin following pushback from validators and community members. The decision reflects broader unease about the firm's role in the ecosystem and its multi-product strategy.
Guy Young's company faced scrutiny over its non-native status within Hyperliquid and ambitions extending beyond USDH. "We chose to step aside rather than force a contentious path," Young stated, acknowledging the community's reservations.
Native Market emerges as the new frontrunner for USDH management. Meanwhile, Ethena will redirect focus to synthetic dollar development and reward-bearing collateral products on Hyperliquid's platform.
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