As the competition in the decentralized exchange (DEX) space intensifies, Hyperliquid has become one of the most watched platforms this year due to its impressive growth rate and expanding product portfolio.

Yesterday, the foundation announced that it will launch its own USD stablecoin, USDH, through on-chain governance. This move not only means that Hyperliquid hopes to gradually get rid of its dependence on Circle USDC, but is also interpreted by the outside world as a key step in building a "self-sustaining" mechanism and improving the ecological closed loop.

After the news was announced, Hyperliquid's native token HYPE rose to $47.63. Although it has since fallen slightly, according to CoinGecko data, its price has still maintained a 4% increase in the past 24 hours.

From "Newcomer" to "Dark Horse": Hyperliquid's Strong Rise

In 2025, Hyperliquid quickly jumped from a second-tier platform to the top DEX camp with its strong trading activity. According to DeFiLlama data, the platform's contract trading volume in August reached $398.00 billion, and the spot trading volume also reached $20.00 billion.

On August 25, its Bitcoin spot trading volume once surpassed CEX Coinbase and Bybit.

Its capital sedimentation is also remarkable: at the beginning of this year, Hyperliquid's total locked-up volume (TVL) was only $317.00 million, but by September, it had soared to $2.50 billion, an increase of nearly eight times. All of this shows that Hyperliquid is rapidly gaining favor with users and becoming an important gathering place for capital and trading liquidity.

In this context, Hyperliquid's launch of its own stablecoin USDH is obviously a natural move.

For an exchange, mastering stablecoins can not only reduce external dependence, but also transform the interest income from stablecoin reserves into a driving force for its own development, truly achieving "self-sufficiency."

USDH's Issuance Mechanism: Decentralized Governance-Led

Unlike mainstream stablecoins, the issuance of USDH is not directly decided by a single company, but through Hyperliquid's on-chain governance system.

First, Hyperliquid has reserved the code name for USDH. Next, it will be open for teams to submit proposals explaining how to issue and operate the stablecoin. Then, validators will decide which team wins in a five-day vote.

Even if authorized, the team still needs to participate in Hyperliquid Layer 1's "spot deployment gas auction" to complete the launch. This means that the issuer of USDH is not predetermined by the foundation, but is generated through community competition.

The design of this mechanism not only reflects the spirit of decentralization, but also enables Hyperliquid to enhance community participation and cohesion through the governance process. At the same time, the foundation clearly stated that USDH must be "compliant." Against the background of the implementation of new regulations such as the GENIUS Act, this lays a compliant foundation for its future stable operation.

Differences from USDT and USDC

The stablecoin market is currently dominated by USDT and USDC, with a combined market share of over 80%. In contrast, USDH is positioned to be more "ecologically native."

First, the issuing entities are different. USDT and USDC are issued by centralized companies such as Tether and Circle, and the reserve funds are managed by the company; USDH is deployed by a team selected by governance voting, which is more in line with the positioning of "protocol native assets."

Second, the use scenarios are different. USDT and USDC cover almost the entire crypto ecosystem and are general settlement tools. USDH mainly serves Hyperliquid's internal transactions and becomes the exclusive stable asset for derivatives, clearing, and liquidity pools.

More importantly, the revenue model is different. The reserve interest of USDT and USDC is exclusively enjoyed by the issuing company, while once USDH is running, its reserve income may be redistributed through governance and returned to validators or the community. This makes Hyperliquid's stablecoin not only a payment tool, but also a "blood circulation system" that drives ecological growth.

In terms of transparency and compliance, USDT has been questioned, USDC has gained some trust with the help of Circle's background, and Hyperliquid clearly emphasizes the compliance attributes of USDH and combines its operation with on-chain governance. "In theory," transparency will be higher.

Community Controversy

It is worth noting that the USDH plan has just been announced, which has triggered fierce controversy in the community.

Max, the developer of Hyperstable, an established stablecoin protocol in the ecosystem, took the lead in speaking out. He pointed out that in the past, the USDH code name had been blacklisted, forcing them to use "USH" as the stablecoin symbol. Now, the foundation suddenly unblocked USDH, making Hyperstable feel that the rules have been temporarily changed, "which is extremely unfair to teams that have invested a lot of resources."

At the same time, the proposal of another candidate team, Native Markets, has also caused controversy. Community members discovered that the team's wallet only received Hyperliquid funds a few hours before the announcement was released, and the plan it submitted was detailed and complete, as if it had been prepared for a long time. This makes people suspect that they knew the news in advance, or even whether there is some undisclosed relationship with the foundation.

Supporters argue that unblocking USDH is not a "black box operation," but is due to changes in the compliance environment after the GENIUS Act came into effect. Since the external environment is different, the rules should naturally be adjusted accordingly. Behind the controversy is the question of whether Hyperliquid can maintain governance neutrality and treat developers fairly.

A New Stage in the Stablecoin Race

The bigger background is that the stablecoin market itself is ushering in a new round of expansion. According to DeFiLlama data, the total market value of global stablecoins has exceeded $285.00 billion, an increase of more than 5% in the past week. Among them, Tether's USDT accounts for 58% of the share, followed by USDC.

At the same time, industry giants and emerging players have entered the game: MetaMask is cooperating with infrastructure provider M0 to launch mmUSD; payment giant Stripe is also working with Bridge to issue internal stablecoins. Under this trend, Hyperliquid's USDH is not an isolated attempt, but a part of a larger wave. Exchanges, public chains, wallets, and payment companies all hope to control their own currency system in order to reduce external dependence and master the long-term benefits brought by reserve assets.

If USDH can be successfully launched, it will be an important step for Hyperliquid to achieve "self-sufficiency," and it also means that it is no longer satisfied with being just a trading platform, but has taken a substantial step towards building a complete financial ecosystem. Next, it depends on how the community reaches a consensus and how it acts. The story has just begun.

Original link: https://www.bitpush.news/articles/7568333 [BitpushNews]