3 hours ago
Ethena Labs has withdrawn its bid to contented Hyperliquid’s USDH stablecoin aft validators and assemblage members raised concerns.
In a Sept. 11 post connected X, Ethena laminitis Guy Young confirmed the withdrawal, citing feedback questioning Ethena’s positioning wrong the ecosystem.
Young noted that conversations with validators raised 3 main points: Ethena is not a autochthonal Hyperliquid team, it operates respective products extracurricular USDH, and its broader ambitions spell beyond 1 speech partnership.
He said Ethena has chosen to measurement speech alternatively than contention the arguments presented by the community.
Earlier successful the week, Ethena joined the Hyperliquid stablecoin contest, which has attracted respective teams, including Paxos, vying to negociate USDH.
Its transportation progressive backing the stablecoin wholly with USDtb, a token connected to BlackRock’s BUIDL. The squad besides pledged to instrumentality astir each reserve gross to the Hyperliquid community, screen migration costs from USDC, and inject astatine slightest $75 cardinal successful incentives.
Native Market gains momentum
Ethena’s withdrawal clears the tract for Native Markets, which Young publically congratulated. Notably, CryptoSlate antecedently reported that the Native Market squad was a wide favorite among the competing teams.
Young addressed critics who had questioned Native’s credibility, arguing that their occurrence reflected Hyperliquid’s community-driven ethos.
According to him:
“No 1 gives a f#ck however large you are, your background, pedigree oregon fiscal resources. It is simply a level playing tract wherever emergent players tin triumph the hearts of the assemblage and are fixed a just changeable astatine succeeding.”
Broader plans
Although Ethena’s USDH bid is disconnected the table, Young stressed that the project’s broader plans connected Hyperliquid stay unchanged.
He outlined plans to prioritize products specified arsenic synthetic dollars (hUSDe), USDe-powered savings and paper products, and hedging flows designed for Hyperliquid markets.
Ethena besides intends to research HIP-3 markets, including reward-bearing collateral, modular premier broking, and perpetual equity swaps.
According to Young, these initiatives correspond Ethena’s semipermanent strategy of doubling down connected innovation.
He wrote:
“We volition bash what we person ever done since time one: outcompete everyone other connected merchandise regardless.”
The station Ethena Labs drops retired of Hyperliquid’s USDH stablecoin bid citing ecosystem concerns appeared archetypal connected CryptoSlate.
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