USDH Launch Boosts Hyperliquid Amid Competitive Market Pressure

Native Markets has staked and locked 200,000 HYPE tokens for three years, making USDH the first permissionless spot quote asset added to Hyperliquid. The HYPE/USDH trading pair is now live, enabling users to trade with a stable, backed asset. This addition strengthens Hyperliquid’s ecosystem and positions it as a key player in decentralized finance (DeFi).

USDH Stablecoin: A Major Advancement for Hyperliquid

USDH stablecoin is now available for trading across Hyperliquid’s decentralized markets. It is paired with Hyperliquid’s governance token (HYPE) and USDC, offering a stable trading option. In preparation for the launch, Native Markets locked 200,000 HYPE tokens for three years, ensuring liquidity and governance alignment.

Native Markets pre-minted $15 million USDH through HyperEVM, collaborating with the Assistance Fund to support initial liquidity. The stablecoin is backed by a mix of cash and short-term U.S. Treasuries, ensuring stability. Additionally, periodic buybacks of HYPE tokens will be funded by returns from these reserves, strengthening Hyperliquid’s economic foundation.

Earlier this month, a governance vote approved Native Markets to issue Hyperliquid’s first stablecoin. The proposal outperformed those from competitors such as Paxos and Agora, marking a major milestone for Hyperliquid’s growth and ecosystem development.

Facing Growing Competition from Aster DEX

Hyperliquid’s USDH launch comes at a time of fierce competition from Aster, a CZ-endorsed DEX. Aster has surpassed Hyperliquid in 24-hour revenue, generating $10 million compared to Hyperliquid’s $3 million. However, both exchanges are still behind leaders like Uniswap and PancakeSwap in terms of overall trading volume.

Aster’s rise is supported by PancakeSwap’s new cross-chain swaps on the Solana network, further intensifying the competitive landscape. Operating on the BNB Chain, Aster also enables direct deposits from Solana, giving it an edge in cross-chain functionality.

The introduction of cross-chain swaps has increased competition among DEXs. This development could have long-term implications for how decentralized platforms expand and integrate with other blockchain networks.

Despite the fierce competition, Hyperliquid remains committed to innovation. The platform plans to integrate USDH into its spot market and introduce USDH-margined perpetual order books. These efforts demonstrate Hyperliquid’s focus on strengthening its position in the DeFi space.