The post refers to a 24‑page research report by Zach from Stablewatch (X handle @zdubs33) that systematically reviews the competing proposals in Hyperliquid’s ongoing “USDH wars,” the governance process to select the issuer and design of the protocol’s native stablecoin, USDH. Hyperliquid, a fast‑growing perpetuals DEX and L1 chain, is auctioning its reserved USDH ticker via governance rather than building an in‑house stablecoin, inviting external issuers to submit detailed proposals on collateral structure, revenue sharing, risk management, and ecosystem incentives. The contest has drawn multiple major players from TradFi–crypto and DeFi, turning the process into one of the most closely watched live experiments in stablecoin/governance design. In this “proposal war,” teams including Paxos, Native Markets, Ethena, Sky, Curve, Bastion, and others have each submitted bids outlining how they would structure USDH and share the yield generated from reserve assets with Hyperliquid’s ecosystem. At stake is control of a stablecoin intended to challenge USDC’s dominance on Hyperliquid, where roughly $5 billion in USDC currently sits on the platform and a large share of the associated yield presently accrues to external entities such as Circle and Coinbase instead of Hyperliquid users and tokenholders. Zach’s Stablewatch report, described in the post as the most in‑depth analysis so far, walks through all six leading proposals side‑by‑side—covering their regulatory posture, reserve composition, yield distribution, and alignment with HYPE/validator incentives—providing governance participants with structured due diligence ahead of validator and community voting deadlines in mid‑September 2025.

AI-generated background, compiled from web sources — not editorial content.

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