Analyzing the purpose of Hyperliquid USDH issuance: corporate cooperation is not important, seizing the pricing power of coin listing is the real battlefield.

The bidding for Hyperliquid's native stablecoin USDH is about to enter the voting stage, with Native Markets leading by a landslide. On the surface, it seems like a competition of who can issue USDH, but the real focus is not on corporate integration or compliance strength, but rather on how Hyperliquid can create a narrative by mastering the rights to list coins and set prices, competing head-on with traditional CEX.

( Summary: Hyperliquid will issue stablecoin USDH? Paxos, Frax, Agora, Ethena compete for )

Bidding Situation: Native Markets Stand Out

According to the usdhtracker data, the newly added proposal for Native Markets currently has 70.45% of the staking share support, receiving support from a total of 10 out of 19 validators; Paxos ranks second with 16.64%; Ethena comes in third with 8.22%.

Polymarket forecasts indicate that Native Markets has a winning rate of up to 96%. In response, Ethena also announced its withdrawal from the bidding yesterday, effectively paving the way for Native Markets:

We have received feedback from many community members, including that we are not a native project of Hyperliquid and that there are other stablecoin products besides USDH. Therefore, we have decided to withdraw the proposal.

( Paxos and PayPal collaboration update on Hyperliquid USDH proposal, Ethena and Sky also participate )

Sorting out the controversy of Native Markets: Validators already have preferences, so why vote?

It is reported that Native Markets is a newly established team composed of Hyperliquid advisor Max Fiege, former COO of Uniswap Labs MC Lader, and former Paradigm contributor Anish Agnihotri.

They focus on “Hyperliquid Native”, promising to mint USDH on HyperEVM, and will use half of the reserve interest earnings for HYPE buybacks, while the other half will be used to drive ecological growth.

Although it seems that victory is in hand, the team still sparked considerable controversy during the bidding process. Dragonfly managing partner Haseeb Qureshi criticized the proposal as “a farce”:

Multiple proposers told me that all validators are not interested in any proposals outside of Native Markets. This isn't even a serious discussion; it seems that it was decided long ago behind the scenes.

He stated that Native Markets lacks practical cases yet immediately received over 70% support, and the entire USDH voting is basically tailored for Native Markets.

The true purpose of Hyperliquid: to seize the power of coin listing pricing.

In the eyes of crypto KOL Crypto Weituo, debating who is more compliant and who brings more business cooperation opportunities is not the core demand for Hyperliquid as a “perpetual contract exchange ( perp dex ).”

He stated bluntly that the revenue of the contract exchange relies on the “transaction fees” from contract trading, rather than payment channels or hedge funds. Therefore, attracting people to place bets is the key:

For Hyperliquid to survive, it must compete for the “listing pricing power”. History has repeatedly shown that whoever can dominate the listing and pricing of new assets can attract liquidity and dominate the market.

He stated that this is also why the narrative surrounding RWA and ETF is so loud, yet the attention remains focused on Binance, Upbit, and Solana.

The role of USDH: An excellent engine for market making.

He then said that at this time, the solution from Native Markets perfectly aligns with this logic, and the team is also composed of insiders:

By issuing its own stablecoin USDH, using the reserve interest to promote active market making and price pumping in its spot and futures markets, constantly creating the next $MYX, with attention never ceasing.

He pointed out that this is similar to how Binance relied on BUSD to promote the ecological prosperity of BSC back in the day.

Step 1 to Compete with CEX: Capture Market Attention

Ultimately, the significance of the USDH bidding goes far beyond choosing which issuer to select. Hyperliquid aims to establish a financial engine that can autonomously drive market creation, generating high-volatility tokens that can attract market attention, thereby challenging attention centers like Binance and Solana.

For Paxos or Ethena, compliance and corporate integration are indeed attractive; but for Hyperliquid, only by mastering the issuance and pricing rights can it compete with large exchanges.

This article analyzes the issuance purpose of Hyperliquid USDH: corporate cooperation is not important, seizing the pricing power of new coin listings is the main battlefield. It first appeared in Chain News ABMedia.