Paxos has announced an update to its proposal for the USDH stablecoin, aimed at enhancing its partnership with PayPal and Venmo. The new plan includes PayPal's support for the Hyperliquid ecosystem, with initiatives such as listing the HYPE token and features for seamless on and off-ramps. They will also facilitate the use of USDH for payments through Venmo and Xoom, bolstering the global reach of the stablecoin, especially in the European Union where Paxos maintains regulatory approval. In terms of financial incentives, PayPal has committed $20 million to support the HYPE ecosystem. Additionally, Paxos will earn fees based on the total value locked (TVL) in Hyperliquid, starting at 1% once it crosses $1 billion in TVL and scaling up to 5% at $5 billion. Up to 80% of the funds will be allocated to ecosystem development in early phases, reducing to 25% as revenue builds for the Assistance Fund, which serves to buy back HYPE tokens. This update comes amid competition from various firms vying to propose their own versions of USDH.

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