Paxos, Frax, and Agora battle for Hyperliquid's USDH contract

With a native stablecoin, Hyperliquid can reduce reliance on external assets, while multiple other stablecoins will continue to operate within the ecosystem. In its proposal, Paxos Labs emphasized USDH’s compliance with the MiCA and GENIUS Act stablecoin frameworks. Paxos plans to deploy USDH on HyperEVM, an Ethereum-compatible network, and HyperCore, Hyperliquid’s own blockchain.

The team also proposes using a large portion of revenue - 95% of interest - to buy back HYPE, Hyperliquid’s native token, supporting ecosystem initiatives, partners, and users. Paxos Labs said it intends to add HYPE as an asset within its brokerage infrastructure, which powers crypto trading for platforms such as PayPal, Venmo, MercadoLibre, Nubank, Interactive Brokers, and others.Frax, issuer of the frxUSD stablecoin, proposed backing USDH 1:1 with frxUSD, which is itself supported by BlackRock’s on-chain, yield-generating BUIDL treasury fund. 

Frax described its proposal as “community-first,” offering easy minting and redemption between frxUSD, USDC, USDT, and fiat, while complying with the GENIUS standard.

Agora submitted a coalition bid to issue Hyperliquid’s USDH. Its stablecoin would be built on institutional infrastructure, fully backed by cash and short-term Treasurys, GENIUS-compliant, and Hyperliquid-native. Agora pledged 100% of net revenue to Hyperliquid for the Assistance Fund or HYPE buybacks.

The Native Markets team, including ex-Uniswap exec MC Lader, proposes a USDH stablecoin integrated with Stripe’s Bridge, pledging part of reserve proceeds to the Assistance Fund. Ethena Labs has hinted at entering the bidding process in an X post.

Hyperliquid announced that validators will vote on September 14, between 10:00–11:00 UTC.