I compared the liquidity of each of the stables operated by USDH candidates.
I looked at their quotes against USDC (from $50K to $5M) and it seems that:
➡️ All of them except frxUSD and AUSD (not in chart) have deep liquidity until 500K trades
➡️ USDS, USDP and PYUSD are the only maintaining over 0.9995 (i.e. 5bps differential) above $1M
➡️ AUSD is still pretty small (less than $50M mcap on Mainnet) and basically has no interesting quotes above $200K.
Ofc their liquidity can vary and can largely improve in the future, but it gives a glimpse of the maturity of all stablecoins mentioned in the proposals/
So @HyperliquidX just opened a request for proposal (RFP) to assign the $USDH ticker to a 3rd party stablecoin issuer (stakers and validators vote on the proposal of their choice).
Why Hyperliquid wants this
This would greatly reduce the reliance on USDC/Coinbase, and most importantly keep reserve yield + liq incentives inside the HL ecosystem --> why let value leak to external parties?
Projects involved
• @ethena_labs: Fiat-backed USDH via USDtb; ≥95% of net reserve yield routed back to HL + migration paths from USDC
• @Paxos: Enterprise rails and audits; returns 95% of interest to $HYPE buybacks and eco
• @withAUSD: State Street custody + @vaneck_us asset manager; 100% of net revenue to HL; $10m+ day-1 liq on HL
• @fraxfinance: USDH at frxUSD parity; 0% take rate, on-chain T-bill yield to HL; mint/redeem across frxUSD/USDC/USDT/fiat
• @fiege_max (Native Markets): Issuer-agnostic via Bridge; 50% yield stream to the Hyperliquid Assistance Fund, 50% to growth; programmatic mint/redeem
• @CurveFinance: dUSDH stablecoin which is a a decentralized CDP twin (crvUSD/LLAMMA) to sit alongside a regulated USDH
• @SkyEcosystem: USDS-style multi-colalt with PSM; instant 2.2b USDC redemption; directs ~4.85% return on HL-held USDH to HYPE buybacks
• @BastionPlatform: NYDFS-chartered trust; issuance-as-a-service; free USD mint/redemptions, compliance-first
What is most important
• HL-first + HL-aligned
• Compliant
• Revenue-share % + day-1 liquidity
• Custodians + redemptions
This is big, literally choosing who powers HL’s stablecoin which would have massive volumes
Read more about the differences below
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