Sky Joins Bidding War to Launch Hyperliquid’s USDH - Unchained

Major DeFi protocol Sky has put itself in the running to issue and manage Hyperliquid’s planned stablecoin USDH.

Sky, formerly known as MakerDAO, is the fifth major entity to submit a bid alongside Paxos, Frax Finance, Agora, and Native Markets.

Sky said it would offer 4.85% rewards on all USDH on Hyperliquid, facilitate $2.2 billion USDC in instant offchain redemption liquidity and have its $8 billion balance sheet ready to deploy.

Rune Christensen, Sky’s co-founder, even floated the idea of Sky moving its buyback system on to Hyperliquid, and using over $250 million in profits to build SKY liquidity on Hyperliquid.

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“The similarity of Sky and Hyperliquid in focusing on real profits, building useful decentralized infrastructure, means there is a natural alignment between Sky and Hyperliquid,” said Christensen.

Hyperliquid’s native token HYPE has rallied hard since stablecoin issuers began competing to launch USDH. In the last 24 hours, HYPE soared 12% to an all-time high of $53.36, with trading volume soaring 141% to $397 million.

Hyperliquid’s validators will decide the USDH stablecoin issuer in a governance vote on Sept. 14.