Sky has formally entered the competitive bidding process to issue Hyperliquid's native stablecoin, USDH. The protocol is leveraging its substantial $8 billion balance sheet to back the initiative, proposing an attractive 4.85% yield for USDH holders on the platform.

This move positions Sky as the fifth major contender vying for the right to manage USDH infrastructure, signaling a significant escalation in the battle for stablecoin market share. Sky's comprehensive proposal includes a $25 million capital injection to foster ecosystem growth and a commitment to utilize its more than $250 million in annual profits to build deep liquidity for its own SKY token on Hyperliquid.

The proposal underscores a broader industry trend of established DeFi protocols competing to provide foundational infrastructure for emerging networks. By offering deep liquidity, multi-chain access, and robust risk management frameworks, Sky aims to make its version of USDH the most attractive option for Hyperliquid users, potentially bringing billions in Total Value Locked (TVL) to the network.