Ethena Withdraws Bid for Hyperliquid’s USDH Stablecoin
Ethena, the team responsible for the USDe synthetic dollar protocol, has retracted its proposal to issue Hyperliquid’s USDH stablecoin, following concerns raised in direct conversations with community members and validators.
In a statement on X Thursday, the Ethena team recognized the feedback regarding their non-Hyperliquid-native status and announced their decision to step back, expressing congratulations to rival Native Markets, which is now seen as the leading contender in this endeavor.
“While some are complaining about their lack of credibility (Native Markets), I think their success here perfectly embodies everything that is so special about Hyperliquid and their community,” stated Ethena Labs founder Guy Young.
Ethena’s withdrawal signifies a significant change in the bidding process, which has attracted various proposals from multiple teams vying to issue USDH, Hyperliquid’s upcoming native stablecoin.
With Ethena out of the running, prediction markets on Polymarket currently give Native Markets a 92% probability of victory, while Paxos trails in second with approximately 7% at the time of writing.
This is an evolving story, and more information will be provided as it becomes available.
