Bidders are competing to build Hyperliquid’s stablecoin, with six proposals posted on Discord after the announcement. The stablecoin, USDH, aims to reduce dependence on external issuers. Hyperliquid, a top DeFi exchange, handled $378 billion in trading volume last month, using USDC and USDT. Validators will vote on proposals post-network upgrade.

Paxos, a major fintech firm, submitted a proposal for USDH, backing it with US Treasury Bills and Global Dollar. Community feedback on Paxos’ proposal has been positive. Frax Finance, issuer of Frax Dollar, wants to issue USDH natively on Hyperliquid. Community feedback on Frax’s proposal has been mostly positive.

Agora plans to share 100% of net revenue from USDH’s reserve assets for HYPE token buybacks. Agora’s proposal has garnered positive feedback. Native Markets, a new organization, aims to issue USDH backed by offchain and onchain reserves. Concerns have been raised about Native Markets relying on Bridge for stablecoin issuance.

Read more at Yahoo Finance: Meet the bidders vying to build Hyperliquid’s USDH stablecoin