Current stablecoins often direct most profits to issuers rather than to users. Hyperliquid aims to change this with its proposed stablecoin, USDH, which plans to recycle reserve yields back into its ecosystem through buybacks and incentives. Partnering with Paxos, a well-known regulated firm, Hyperliquid's USDH proposal emphasizes regulatory compliance, infrastructure, and yield benefits. About 95% of the yield from reserves would be reinvested into Hyperliquid, and USDH would launch natively on HyperEVM and HyperCore. Its integration with PayPal and Venmo offers extensive reach, supported by a $20 million incentive fund. Despite these advantages, risks remain, including regulatory uncertainties and potential competition from established stablecoins. Successful implementation could position Hyperliquid as a significant player in DeFi and financial technology, making USDH an appealing stablecoin prospect.

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