Hyperliquid USDH Vote Ends With Native Markets on Top

The rollout will begin with capped minting and redeeming trials before opening a USDH/USDC order book and eventually allowing uncapped ￰0￱ the decision is a big step for Hyperliquid, it also drew some criticism from the crypto ￰1￱ people in the industry called the process unfair and suggested it favored Native Markets from the ￰2￱ the same time, Yala’s Bitcoin-backed stablecoin YU came under pressure after an attempted exploit led to a sharp depeg, dropping as low as $0.2046 before partially ￰3￱ assurances that all funds are still safe, YU still trades below its intended $1 peg at about $0.8667. Native Markets Wins USDH Stablecoin Bid Native Markets officially secured the USDH ticker for Hyperliquid’s upcoming dollar-pegged ￰4￱ decision followed a community vote, where Native Markets emerged as the clear frontrunner after prediction market odds spiked to nearly 100% on Polymarket when Ethena, another major contender, withdrew from the race late last ￰5￱ result sets the stage for Hyperliquid’s first-ever Improvement Proposal (HIP), through which Native Markets will soon launch USDH alongside an ERC-20 token on ￰6￱ to Native Markets founder Max Fiege , the rollout will begin with a testing phase, where minting and redeeming transactions of up to $800 will be allowed for an initial group of ￰7￱ this limited trial, the USDH/USDC spot order book will open, followed by the full launch of uncapped mints and ￰8￱ main goal of the carefully staged rollout is to ensure stability and security as the new stablecoin enters the ￰9￱ the other hand, the process that led to Native Markets’ victory caused a lot of debate in the crypto ￰10￱ in the industry criticized the selection process by suggesting it may have been less open than ￰11￱ managing partner Haseeb Qureshi called the request-for-proposal process “a farce,” and claimed that validators showed little to no willingness to consider any bidders other than Native ￰12￱ comments fed into speculation that the outcome was actually predetermined, with even some framing it as evidence of behind-the-scenes ￰13￱ used the controversy to shed some light on the broader trends in the stablecoin ￰14￱ Mumtaz, CEO of Helius, said that the competition proved how commoditized stablecoins have ￰15￱ predicted that in the future, exchanges may streamline the user experience by removing stablecoin tickers altogether, simply displaying “USD” on the front end while managing the backend swaps between stablecoins ￰16￱ the heated competition and subsequent debate around USDH, the launch of the Hyperliquid’s stablecoin is a big step forward in its bid to establish a robust stablecoin presence in the market.

Yala’s Bitcoin Stablecoin YU Struggles In other stablecoin news, Yala’s Bitcoin-backed stablecoin YU struggled to recover its dollar peg after an incident on Sunday that sent its value tumbling to $0.2046. The team described the event as an “attempted attack” and assured users that all funds remain safe, with Bitcoin reserves held either self-custodially or in ￰17￱ confirmed that no user assets were lost, though some product features have been paused as a precaution while the team investigates with security firm SlowMist and other ￰18￱ the meantime, the Convert and Bridge functions of the protocol have been disabled to prevent even more instability, while other operations remain ￰19￱ analytics firm Lookonchain reported that an attacker minted 120 million YU on Polygon, bridged a portion to Ethereum and Solana, and sold 7.71 million YU for 7.7 million ￰20￱ attacker then converted the funds into 1,501 ETH and dispersed them across multiple ￰21￱ are still large amounts of YU on Polygon, Ethereum, and Solana, which raised concerns about potential further ￰22￱ is designed to maintain a $1 peg using overcollateralized Bitcoin reserves and grew to a $119 million market cap before the incident.

However, its liquidity remains shallow, with only $340,000 in USDC available in its Ethereum ￰23￱ crashing below $0.21, YU briefly rebounded as high as $0.917 but has since struggled to hold its ￰24￱ press time, the token was trading around $0.8667, still far from its intended peg. YU’s price action over the past week () The turmoil came as the broader stablecoin market edged toward a historic $300 billion ￰25￱ to market data, Tether’s USDT, Circle’s USDC, and Ethena Labs’ yield-bearing USDe are still the main drivers of growth, and Yala’s setback proved the challenges newer entrants face when it comes to securing trust and liquidity.