Stablecoin Showdown! Who Will Win the USDH Crown?

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Hold onto your crypto hats, folks, because Hyperliquid is getting a stablecoin-laced triple-threat proposal this week from none other than Paxos, Agora, and Frax, each boasting about their regulatory charm, distribution prowess, and oh-so-generous yield-sharing bonanzas.

Hyperliquid Weighs Its In on Who Gets the Stablecoin Crown

Oh, and guess what? Bitcoin.com News is all over this like a rash. We first mentioned Paxos dropping their bid like it’s hot on Sunday, Sept. 7, and dear Paxos, always the darling, flaunting their fab decade in regulated issuance. That includes those “wildly popular” stablecoins that have reached multibillion-dollar circulation, along with a plan to make USDH the native child of HyperEVM and HyperCore. 🎉

Hyperliquid, for those playing catch-up, is this super cool decentralized exchange that’s all about doing its own thing on its very own layer one (L1). Think a fully onchain order book and a risk engine that’s so good, it makes risk managers blush. The network geeks its way with Hypercore managing the whole trading state and matching thingamajig, and HyperEVM providing a comfy, Ethereum-friendly environment sealed with that top-secret HyperBFT consensus. Now that the bigwigs up top have decided it’s time for a stablecoin – “USDH,” they’re calling it – three distinct souls have been vying to be the foundational infrastructure Avengers.

Paxos is that one glorious unicorn that has been prancing around the stablecoin realm for eons, launching the Pax Dollar (USDP) and the Global Dollar (USDG) like they’re in a playground game. And let’s not forget their stewardship of Paypal’s stablecoin, PYUSD, and their oh-so-luxe gold-backed token, PAXG. Oh, and get this: they’re routing a whopping 95% of the interest from USDH reserves back to buy back HYPE and fund ecosystem goodies, because why not? With their U.S., European, and Asian regulatory footprints, Paxos is quite the globe-trotter! 😎

In a remarkable twist of destiny (or maybe just shrewd business), Paxos scooped up Molecular Labs to make sure their Hyperliquid integration is tighter than a pair of skinny jeans. Meanwhile, Agora Finance has gallantly joined the stablecoin infrastructure sweepstakes. Founded by the one and only Nick van Eck, Agora has its fingers in quite a few pies, including fiat rails and all the compliance tooling you could wish for. With their flagship AUSD, a confident 1:1 dollar-backed stablecoin, you could almost touch the pride in their proof-of-reserves and collaborations with the likes of State Street and Vaneck. Agora’s master plan? A coalition approach promising to share all the juicy net revenue from USDH’s treasury assets with Hyperliquid. Yep, because why keep anything for themselves when you can be genuinely, wonderfully, inboxingly GENIUS-aligned? 🤓

And then there’s Frax. They’ve got this whole plan to back USDH one-to-one with frUSD, designed to meet the oh-so-trendy GENIUS standard. Imagine hiding all that treasure in U.S. Treasurys with the trusty pals Blackrock and Superstate, while directing the whole Treasury yield bonanza back to Hyperliquid users on-chain. Like securing your own lottery win and then doing an elaborate rain dance from your pool, except way less sweaty. Through its blazingly excellent Fraxnet, they promise USDH will be native to Hyperliquid but instantly multichain, distributing rewards like fairy dust, with a sweet zero take rate for all to enjoy. 🎩✨

All three proposals are all about being the good global citizens, stressing compliance and international connectivity like regular attendees of the Bonnaroo of finance. Their differences mostly lie in that sweet, sweet revenue flow. You’ve got Paxos talking about putting 95% of their interest back into the ecosystem – quite civil of them – Agora pledging the full roadie meal allowance of net revenue to buybacks, and Frax, the pious monks of yield, claiming they’ll zero in on taking no cuts and forwarding the entire treasure map to the people. They’re all jazzed about timelines and execution, Paxos and Frax getting enthusiastic over contracts and deployments, while Agora pops up at launch with initial liquidity and integrations as eager as a Labrador with a new chew toy. 🐶

Paxos is shaking hands with U.S. blue chips and European rulebook companions, offering payment rails for on-off-ramps like a seasoned travel agent. Agora, meanwhile, goes for prudential licensing and big-time traditional finance buddies, while Frax showers us with their onchain proofs and public dashboards. Cross-chain reach for all: Paxos through enterprise distribution, Agora riding Layerzero’s interoperability wave, and Frax spreading their wings with Fraxnet. Who will win the hearts of Hyperliquid? Only time (and the almighty yield) will tell…

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2025-09-08 08:58