Sky strongly joins the Hyperliquid stablecoin bidding war, promising high returns and compliance advantages.

The encryption protocol Sky (formerly known as MakerDAO) officially announced its entry into the bidding war for Hyperliquid's native stablecoin USDH, becoming the fifth crypto project to submit a proposal. Sky co-founder Rune Christensen promised that if the Hyperliquid community chooses Sky, it will bring high yields, cross-chain support, and US compliance options for USDH, and invest $25 million to promote the development of the Hyperliquid DeFi ecosystem.

Highlights of Sky's Proposal

High Yield Commitment: All USDH on the Hyperliquid platform will earn an annualized return of 4.85%, higher than the rate of U.S. Treasury bills.

Cross-chain support: Achieve native multi-chain circulation through LayerZero.

Exchange with USDS: USDH can be exchanged with the USDS stablecoin issued by Sky, and holders can receive a 4.75% yield.

Compliance options: Can be adjusted according to the GENIUS Act to ensure legality in the US market.

Ecological Investment: Providing $25 million in funding to establish a dedicated DeFi project, expected to bring billions of dollars in revenue to Hyperliquid.

Rune Christensen stated, "With the support of Sky, the Hyperliquid community will gain unparalleled advantages that other stablecoin projects cannot provide."

Competition for USDH Issuance Rights

Hyperliquid announced on Discord last Friday, inviting teams to bid for the issuance rights of the "Hyperliquid priority, with the code USDH, native stablecoin."

The projects that have been proposed so far include:

Native Markets (founded by Hyperliquid advocate Max Fiege, in collaboration with the Stripe payment processor Bridge)

Frax (stablecoin protocol)

Paxos (stablecoin issuer)

Agora (a cryptocurrency infrastructure company supported by MoonPay)

Sky (newly added this time)

VanEck CEO's Public Appeal

Investment giant VanEck CEO Jan van Eck posted on X (formerly Twitter) on Monday, calling on the Hyperliquid community to support the Agora proposal co-founded by his son Nick van Eck.

He emphasized that Agora has communicated with several HyperEVM developers and will continue to provide value to the Hyperliquid ecosystem, but at the same time stated: "We don't like being collectively attacked; if we can be easily bullied, you definitely wouldn't want to partner with us."

Next step: Community vote to determine the outcome

Hyperliquid validators will vote on the supported proposals after the next network upgrade. The specific voting time has not yet been announced.

The winning team will gain the leading role in the issuance and promotion of USDH, and may become an important growth engine for the Hyperliquid ecosystem.

Conclusion

With the addition of Sky, the bidding war for Hyperliquid USDH stablecoin has further intensified. High yields, cross-chain support, and compliance advantages have allowed Sky to stand out among numerous competitors. However, the final outcome still depends on the voting choices of the Hyperliquid community and validators. This competition is not only about the issuance rights of stablecoins but may also determine the ecological landscape of Hyperliquid for the coming years.