Three major stablecoin issuers—Paxos, Agora, and Frax—are competing to provide the infrastructure for USDH, the native stablecoin of the decentralized derivatives platform Hyperliquid. Each has submitted a distinct proposal to the Hyperliquid community, which will be decided by a validator vote. This decision is critical for Hyperliquid as it aims to establish a stable and reliable native asset for its ecosystem.

Paxos has proposed a regulated and compliant stablecoin, offering a 95% revenue share from the underlying assets to be used for HYPE token buybacks. Agora, a new entrant in the stablecoin space, has countered with a proposal for a 100% net revenue share. Frax, a well-established player in decentralized finance, is offering to back USDH 1:1 with its own frxUSD stablecoin at zero fees. The choice will have significant implications for the Hyperliquid ecosystem, influencing its regulatory standing, revenue model, and decentralization.