Co-founder Rune Christensen announced the proposal on Monday, noting that Sky’s backing would give Hyperliquid advantages unmatched by rival bids.
Sky’s Proposal: Yield, Compliance, and DeFi Growth
Sky’s plan includes a 4.85% return on USDH balances, higher than U.S. Treasury Bill rates. USDH would also link to Sky’s USDS stablecoin, offering a 4.75% yield and multichain support via LayerZero.
Christensen added that USDH could be adapted for compliance under the GENIUS Act, which restricts stablecoins from paying yield. Additionally, Sky pledged $25 million to grow DeFi on Hyperliquid through exclusive tokens.
Fifth Major Bid for USDH
Sky’s bid is the fifth, following proposals from:
- Native Markets, backed by Max Fiege and Stripe’s Bridge.
- Frax, the decentralized stablecoin protocol.
- Paxos, a regulated stablecoin issuer.
- Agora, a crypto infrastructure firm backed by MoonPay.
VanEck CEO Steps In
Jan van Eck, CEO of VanEck and father of Agora’s Nick van Eck, appealed on X for the Hyperliquid community’s support, emphasizing long-term contributions but warning against aggressive bidding tactics.
What’s Next for USDH?
Hyperliquid validators will vote on their preferred proposal after the network’s next upgrade. The decision could shape USDH adoption and Hyperliquid’s DeFi future.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always conduct your research before making any investment decisions.
