Devs affected by the sunsetting of USDH will receive $10 million in grants

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Hyperliquid Foundation will allocate $10 million in grants to developers affected by the sunsetting of its native stablecoin, USDH, in favor of USDC. 

The news came on Sunday, weeks after the Foundation had unstaked 250,001 HYPE, worth $16.9 million, from its grants wallet. 

Three days ago, 250,001 hyperliquid:native worth $16,993,317.97 was unstaked from the grants wallet, which originally held 3M hyperliquid:native at TGE.

This is likely related to supporting builders that used $USDH. pic.twitter.com/EFvXUUDteh

Per the announcement, the grants will be distributed to HIP-3 deployers, HIP-1 deployers, and other developers who built around USDH. Hyperliquid said the aim is to “help offset migration costs and recognize the work involved in an orderly transition.”

HIP-1 and HIP-3 grants will be distributed based on auction deployment costs, while HyperEVM grants are based on the affected USDH TVL. Teams migrating affected markets to USDC will receive a larger allocation than those simply winding down USDH markets.

All the recipients are under an agreement to commit to orderly migration and wind-down before the end of July.

USDH gives way to USDC

USDH is being shut down after its original developer, Native Markets, granted Coinbase the right to purchase USDH brand assets in May, making way for USDC as a primary asset on Hyperliquid.

Both Circle and Coinbase had partnered with Hyperliquid to adopt the new AQAv2 for USDC, designating USDC as a “protocol-aligned stablecoin,” Cryptopolitan reported.

AQAv2 is a framework aimed at aligning exclusive stablecoins, such as USDC, with the Hyperliquid network. Only then can such stablecoins be used as “aligned quote assets” across the platform’s perpetual and spot markets.

Validators approved the proposal for AQAv2 on June 12th, with 19 of 26 nodes (69%) voting in favor. Following the approval, Circle moved $4.4 billion in USDC to Coinbase via AQAv2, the single largest USDC transaction ever recorded. 

HYPE market update

Trading activities have continued to swell across Hyperliquid’s HIP-3 and HIP-4 markets.

HIP-3 markets now make up 37.2% of all Hyperliquid perpetual trading volume. Meanwhile, total liquidation across the markets has also increased to over $3.33 billion, according to data from ASXN. 

HIP-3 total liquidations. Source: ASXN

Elsewhere, data shows that HIP-4 outcome markets recorded $29.9 million single-day volume, with a 360% increase week-over-week.

At the time of writing, HYPE was up 1% on the 24-hour timeframe, trading at $63.42. 

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