Crypto Giant Sky Race to Launch Hyperliquid’s USDH

Sky, a giant in the cryptocurrency industry, has partnered with Hyperliquid to introduce the USDH stablecoin

ContentsSky’s Role in USDH’s DevelopmentMulti-Chain Access and Strong ReturnsA Boost for Hyperliquid’s GrowthThe partnership is meant to introduce liquidity, multi-chain connectivity, and consistent returns to the Hyperliquid ecosystem. With a USDH balance sheet of 8 billion dollars and a long history of work, Sky has a chance to create a new standard in the stablecoin market.

Sky’s Role in USDH’s Development

The partnership between Sky and USDH is founded on Sky being well-versed in stablecoins. The company has over 8 billion USDS stablecoin in circulation, which is secured by $13 billion of collateral. This covers crypto resources as well as real-world financial resources, e.g., U.S. Treasury bonds. The success of Sky with its long-standing stablecoins, DAI and USDS, which have been running for over seven years without any significant losses, gives the new project some credibility.

Within the proposal, USDH will have the same structure as DAI and USDS. This implies that it will smoothly integrate into the Hyperliquid trading platform and benefit from the security and stability of the Sky stablecoins. Additionally, the stablecoin will be connected to Sky’s Peg Stability Module (PSM) and allow effortless redemption of USDH to USDC without delays and slippage.

Multi-Chain Access and Strong Returns

With the LayerZero technology, USDH can become available in various blockchains without any third-party software and will enable users to communicate safely with other ecosystems. Furthermore, the USDH owners will be able to get a yield of 4.85% on Sky’s huge balance sheet. This rate is higher than the returns on U.S. Treasury bills now, and thus, it is an appealing choice among users who require stable returns.

Sky has a strong financial position, as shown by its yearly profit of 250 million. Some of this revenue is once again invested in the ecosystem, including repurchasing SKY tokens to help stabilize their value. The proposal plans to transfer this buyback mechanism to Hyperliquid, which will assist in pushing the trading action of the SKY token.

A Boost for Hyperliquid’s Growth

Sky will invest in the Hyperliquid ecosystem with a project of 25 million dollars in the form of Hyperliquid Genesis Star. This program is based on the success of similar measures in the Sky network, such as Spark and Grove, that regulate more than 6 billion dollars of collateral. The USDH launch will put the Hyperliquid community in greater control of the features that support the coin, like the types of collateral and risk controls.

USDH’s confidence is boosted by Sky’s successful performance and S&P B credit rating in August 2024. The stablecoin’s transparent, well-documented nature is also similar to that of traditional financial institutions and contributes more to its attractiveness.

Paxos, the stablecoin issuer, announced in related news that it was offering support to the launch of USDH on HyperEVM and HyperCore. The company also focused on its compliance with global rules, which increased Hyperliquid’s global expansion possibilities.