Hyperliquid launches its native stablecoin USDH, directly facing competition from Aster to defend the Perp DEX throne.

Hyperliquid reaches a significant milestone. In a recent governance vote, the proposal for Native Markets won, allowing for the issuance of Hyperliquid's first native stablecoin USDH. This initiative aims to enhance the sovereignty of the Hyperliquid ecosystem and solidify its position in the increasingly competitive Decentralized Exchange (DEX) landscape.

USDH: Hyperliquid's native stablecoin

USDH is now available for trading on Hyperliquid's decentralized market, and has been paired with its governance token HYPE and USDC. This asset is the first permissionless spot quoting asset added to Hyperliquid.

· Liquidity Support: In order to ensure liquidity and governance alignment, Native Markets has taken key actions:

Locking HYPE: Native Markets has staked and locked 200,000 HYPE tokens, with a lock-up period of three years.

Pre-minted funds: 15 million USD of USDH was pre-minted through HyperEVM and initial liquidity was provided in collaboration with the Assistance Fund.

· Asset backing and repurchase mechanism: The USDH stablecoin is backed by a combination of cash and short-term U.S. Treasury bonds to ensure stability. Additionally, the income from these reserve assets will be used for the regular repurchase of HYPE tokens to strengthen Hyperliquid's economic foundation.

· Governance Victory: The proposal from Native Markets defeated competitors such as Paxos and Agora in the previous governance vote, marking an important milestone for Hyperliquid in the development of the ecosystem.

Challenge: Aster DEX Revenue Surpasses

Hyperliquid launches USDH as it faces intense competition from its rival Aster. Aster is a DEX supported by CZ, and it is experiencing rapid growth.

· Income Gap: Aster has surpassed Hyperliquid in 24-hour revenue, with the former generating $10 million in revenue while the latter made $3 million. However, in terms of overall trading volume, both exchanges still lag behind industry leaders like Uniswap and PancakeSwap.

· Cross-chain advantages: The rise of Aster is attributed to the new cross-chain swap feature launched by PancakeSwap on the Solana network, intensifying the competitive landscape. Aster operates on the BNB Chain while supporting direct deposits from Solana, giving it an advantage in cross-chain functionality.

The Future Strategy of Hyperliquid

Despite fierce competition, Hyperliquid remains committed to innovation and plans to deeply integrate USDH to solidify its position in the Decentralization Finance (DeFi) space:

· Market Integration: The platform plans to integrate USDH into its spot market and introduce a USDH margin perpetual order book.

· Long-term goal: These efforts indicate that Hyperliquid is focused on improving liquidity through native stablecoins, reducing dependence on external stablecoins, and enhancing its core competitiveness as a decentralized platform.

Conclusion

Hyperliquid has successfully launched the USDH stablecoin and locked 200,000 HYPE to ensure long-term governance and liquidity, which is a key step in its pursuit of ecosystem sovereignty. In the face of strong challenges from Aster DEX in 24-hour revenue and cross-chain functionality, the deep integration of USDH will be a key strategy for Hyperliquid to maintain its leadership position in the on-chain perpetual contract market and drive the next phase of growth in the DeFi space.