Ethena Exits Hyperliquid USDH Competition, Paving the Path for Native Markets

Ethena Withdraws from USDH Bidding: Ethena has retracted its bid to issue the USDH stablecoin on Hyperliquid due to community concerns about its non-native status, paving the way for Native Markets, which is currently favored to win the bid.

Concerns Over Fairness in the Bidding Process: Critics, including industry experts and competitors like Paxos, have raised questions about the fairness of the bidding process, suggesting that Native Markets may have had pre-arranged advantages despite their integration with Hyperliquid.

Governance Vote for USDH: The governance vote for USDH represents a significant challenge for Hyperliquid, requiring a two-thirds majority of staked HYPE tokens for approval, with key stakeholders abstaining from voting.

Native Markets' Proposal Details: Native Markets, led by a team closely tied to Hyperliquid, proposes to mint USDH with reserves backed by cash and US Treasury bonds, while also committing to ecosystem growth initiatives, despite facing scrutiny over potential risks associated with their offchain management.