Hyperliquid Network Launches USDH: What’s Next?

Hyperliquid network is preparing for the debut of its highly anticipated USDH stablecoin. This development follows a decisive vote by HYPE coin stakers. Native Markets has been entrusted with the governance and rollout of this new altcoin. Set to launch soon, the initial trading phase will feature a limited volume.

What Are Native Markets’ Plans for the USDH Launch?

Native Markets received a nod of approval from network validators for their proposal. Max Fiege, co-founder of the company, confirmed on his X account that the USDH HIP-1 and ERC-20 contracts will soon be enacted, marking the beginning of the launch sequence. Initially, there will be a cap of $800 on both minting and redemption activities.

How Will the Reserve Management for USDH Operate?

The introduction of the USDH comes with a controlled testing phase where selected investors and high-volume users are invited to participate. This stage will be followed by enabling the USDH/USDC trading pair and subsequently lifting the transaction caps. According to Polymarket data, Native Markets’ proposal was expected to succeed by over 90% probability.

A sound reserve management strategy has garnered widespread support for Native Markets. BlackRock will manage part of these reserves through cash and US Treasury bonds. Superstate, with backing from Bridge and Stripe, will oversee tokenized reserves on the Blockchain. This dual approach to reserve management was designed to provide long-term stability and growth.

Revenue from reserves will be divided equally, with half channelled towards ecosystem development and the remainder into the Hyperliquid Assistance Fund. The project is bolstered by contributions from Uniswap Labs, Paradigm, and former Polychain experts.

Kraken exchange is also set to list both USDH and HYPE coins. The management at Hyperliquid reassures that other stablecoins, such as USDC, will remain supported, provided they satisfy requirements like liquidity depth, a robust peg, and a minimum of 10 million HYPE stakes.

Concrete objectives from the project include:

• Facilitating stablecoin trading pairs between USDH and USDC.
• Ensuring reserves managed by BlackRock and Superstate contribute to network growth.
• Sustaining long-term network stability through structured income distribution.
• Fostering collaboration with industry leaders like Uniswap Labs and Paradigm.

The strategic cooperation between Hyperliquid and Native Markets in launching USDH is set to impact the digital currency landscape. With steady progress and careful strategy, the network is establishing itself as a key player in the cryptocurrency arena.