Sky Joins Race to Power Hyperliquid’s Native Stablecoin

Quick Breakdown

Sky, formerly Maker, submitted a bid to build Hyperliquid’s USDH stablecoin.
Proposal includes 4.85% yield, multichain access, and compliance options.
Sky joins Native Markets, Frax, Paxos, and Agora in the high-stakes contest.

Sky Tables Bid for USDH

Decentralized protocol Sky, the project behind USDS and DAI, has officially joined the race to provide the stablecoin framework for Hyperliquid’s native USDH token. Co-founder Rune Christensen revealed the proposal on Monday, promising unmatched benefits for the Hyperliquid ecosystem.

USDH powered by Sky.
• 4.85% rewards on all USDH on Hyperliquid
• 2.2B USDC in instant redemption liquidity
• $8B+ Sky balance sheet ready to deploy
• Backed by Sky’s 7-year track record
Read the proposal by @RuneKek ↓ https://t.co/WYkbHG9Bbc
— Sky (@SkyEcosystem) September 8, 2025

“By using Sky to power USDH, the Hyperliquid community will gain unbeatable advantages that no other stablecoin project can offer,”

Christensen said.

Christensen argued that Sky’s infrastructure could deliver a stablecoin “with unbeatable advantages,” citing returns that surpass U.S. Treasury yields and flexible compliance options.

Yield, Multichain Access, and GENIUS Act Compliance

Under the proposal, Hyperliquid would earn a 4.85% return on all USDH deposits, exceeding current T-bill rates. USDH would also be swappable with Sky’s USDS stablecoin, offering a 4.75% yield while remaining natively multichain via LayerZero.

The pitch includes a compliance-ready framework, allowing USDH to adapt to U.S. regulations such as the GENIUS Act, which prohibits yield payouts by stablecoin issuers.

In addition, Sky pledged $25 million to establish a DeFi growth project on Hyperliquid, promising exclusive tokens that could “potentially bring billions” into the network.

Fifth Bid in a Growing Contest

Sky’s entry marks the fifth proposal submitted since Hyperliquid invited bids on Friday. Other contenders include Native Markets, founded by Hyperliquid advocate Max Fiege with support from Stripe’s Bridge. Frax, the algorithmic stablecoin protocol, Paxos, a regulated stablecoin issuer and Agora, backed by fintech firm MoonPay.

Adding to the competition, Jan van Eck, CEO of asset manager VanEck and father of Agora co-founder Nick van Eck, took to social media, urging Hyperliquid’s community to consider backing his son’s proposal.

Vote Looms After Upgrade

Hyperliquid validators will determine the winning stablecoin framework after the network completes its next upgrade. A date for the vote has not yet been confirmed.

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