Sky Pitches Genius-Compliant USDH Stablecoin With $8B Balance Sheet and 4.85% Yield

The battle over who will issue Hyperliquid’s native stablecoin , USDH, has a new heavyweight entrant. Sky, formerly known as MakerDAO, submitted a proposal to power USDH that leans on its $8 billion balance sheet, seven-year operating history, and a B- S&P credit rating – the first ever issued to a decentralized finance (DeFi) protocol. Hyperliquid, which handled nearly $400 billion in trading volume last month, has invited issuers to compete for the right to deploy ￰0￱ exchange holds $5.5 billion in USDC deposits, roughly 7.5% of that stablecoin’s supply, making the contract one of the most lucrative in ￰1￱ are set to vote on September 14, with the Hyperliquid Foundation abstaining.

Sky’s proposal highlights features few rivals can ￰2￱ offers 4.85% returns on all USDH held on Hyperliquid, a rate above Treasury bills, with revenue earmarked for HYPE buybacks and the Assistance ￰3￱ also pledges $2.2 billion in instant redemption liquidity through its Peg Stability Module, giving institutional traders confidence they can move in and out at ￰4￱ yield and liquidity, Sky is promising ecosystem ￰5￱ proposal includes a $25 million “Hyperliquid Genesis Star,” modeled after Spark, a token farm within Sky that has attracted more than $1 billion in ￰6￱ said this would bootstrap DeFi on Hyperliquid and potentially attract billions in ￰7￱ protocol also pledged to migrate its native buyback engine, with more than $250 million in annual profits, onto ￰8￱ bidders have framed their offers ￰9￱ pledged 95% of reserve earnings to HYPE buybacks alongside a zero-fee USDC ￰10￱ offered a “community-first” wrapper model where 100% of Treasury yield would flow directly to users.

Agora, backed by State Street, VanEck, and MoonPay, promised 100% of net revenue into HYPE buybacks and stressed ￰11￱ Markets, aligned with Stripe’s Bridge , has faced community pushback over potential conflicts of interest tied to Stripe’s Tempo blockchain and its ownership of wallet provider ￰12￱ Ethena hinting at its own bid , validators face a crowded field when they head to the virtual polls in a few ￰13￱ decision will determine not only how USDH is structured, Genius-compliant, user-yielding, or Hyper-native, but also whether Hyperliquid’s monetary layer is tied to a legacy stablecoin giant, a DeFi-native upstart, or a corporate payments firm with blockchain ambitions.