Ethena Labs has become the sixth bidder in the competition for Hyperliquid’s USDH stablecoin, proposing a version fully backed by USDtb, linked to BlackRock’s BUIDL fund. Ethena promises to return 95% of reserve revenue to the Hyperliquid community and has committed to financial incentives between $75 million and potentially $150 million. The proposal also includes partnerships to bring tokenized assets to HyperEVM and the introduction of a synthetic dollar, hUSDe. To mitigate security risks, Ethena suggests building a guardian network overseen by selected Hyperliquid validators. The bidding process includes notable bids from other protocols like Frax Finance, Agora, Native Markets, and Sky. Ethena's existing USDe token has shown rapid growth, now surpassing $10 billion in supply. Their commitments to Hyperliquid extend beyond just USDH, as they aim to create significant value for the network. A decision on the bidding will follow Hyperliquid’s next network upgrade, with an announcement yet to come. Meanwhile, Hyperliquid’s native token HYPE recently peaked at an all-time high of $55.04.

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