Decentralized finance protocol Ethena submitted Tuesday a proposal to challenge Hyperliquid’s upcoming stablecoin, becoming a member of a bidding race that has already attracted a slew of firms like Paxos, Sky, Frax and Agora.
The token could be totally backed by Ethena’s USDtb, a stablecoin issued with federally chartered financial institution Anchorage Digital and totally backed by BUIDL, the tokenized cash market fund by asset administration large BlackRock and Securitize.
“We’re excited to allow Ethena’s USDtb, which is 100% backed by BUIDL and uniquely positioned to supply institutional grade money administration in addition to on-chain liquidity to Hyperliquid customers,” stated Robert Mitchnick, Blackrock’s head of digital belongings, within the proposal.
If adopted, Ethena pledged that 95% of internet income from USDH reserves would move again to the Hyperliquid ecosystem, the proposal stated. Ethena additionally stated it might cowl the prices of migrating current USDC buying and selling pairs on Hyperliquid to USDH to ease adoption.
The proposal comes as competitors to win the issuance of Hyperliquid’s USDH stablecoin is intensifies. The decentralized alternate executed virtually $400 billion in perpetuals buying and selling quantity final month, making it a horny marketplace for stablecoin suppliers to nook. Sky (previously MakerDAO), Paxos, Sky, Frax, Agora and Native Markets threw their hat within the ring. Validators are set to vote on proposals on September 14.
Learn extra: Sky Pitches Genius-Compliant USDH Stablecoin With $8B Steadiness Sheet and 4.85% Yield