What You Need to Know:
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Sky, previously known as MakerDAO, has put forth a proposal to support Hyperliquid’s USDH stablecoin, utilizing its $8 billion balance sheet and carrying a B- rating from S&P, a first for decentralized finance (DeFi) protocols.
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Hyperliquid is inviting other issuers to contend for the contract to deploy USDH, having processed $400 billion in trading volume last month.
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Sky’s proposal promises an attractive 4.85% return on funds held in USDH, as well as $2.2 billion in redemption liquidity and a $25 million investment aimed at enhancing DeFi on Hyperliquid.
The contest for issuing Hyperliquid’s USDH stablecoin has gained a significant player. Sky has entered the race, banking on its substantial financial reserves, a decade-long operational history, and its B- S&P credit assessment. The exchange recently processed nearly $400 billion, indicating its stature in the market.
“USDH powered by Sky offers more than mere stability; it aims to achieve high returns by actively fostering ecosystem growth.”
— Rune (@RuneKek) September 8, 2025
Moreover, the exchange maintains $5.5 billion in USDC deposits, making this contract particularly desirable for DeFi players. As a pivotal vote approaches on September 14, Sky’s unique advantages set it apart from its competitors.
Sky’s returns surpass traditional Treasury rates, while funds from these revenues are dedicated to HYPE buybacks and an Assistance Fund, enhancing confidence among institutional traders about liquidity.
Additionally, Sky commits to investments in the ecosystem, proposing a $25 million initiative intended to cultivate DeFi on Hyperliquid, potentially drawing substantial deposits.
The other contenders, including Paxos and Frax, have made varied propositions, with their own appeals focused on user-centric models and neutrality. The outcome of this vote has the potential to redefine Hyperliquid’s link to either established financial entities or innovative DeFi newcomers, hence plotting the future trajectory of USDH.
