Ethena USDH Leaves Contest, Native Markets Takes Lead

As reported by Wu Blockchain, Ethena Labs has pulled back its proposal to issue Hyperliquid’s USDH stablecoin. Guy Young, who is the founder, said that the community brought up some valid problems, so the team made a decision to step away. He also said that Ethena will keep on working on other products within Hyperliquid.

Community Concerns Led the Decision

Ethena Labs wanted to issue USDH, which is Hyperliquid’s up coming stablecoin. But the community had some doubts. People were doubtful that Ethena was not really a part of the Hyperliquid team. They also said that Ethena had other products and goals that were more than USDH.

Young said that he respected the worries of these people. He explained, “We chose to step aside and support Native Markets, who now lead the race.” This move shows just how important the community thoughts are in Hyperliquid’s ecosystem.

Ethena Keeps Working on Hyperliquid

Even though Ethena dropped from the USDH race, they are still working and giving their support to Hyperliquid. They plan to keep building hUSDe, USDe savings and card tools and also ways to deal with the risks on Hyperliquid.

Further, Ethena will work on HIP-3 markets, which has new financial tools like derivatives. They also are aiming to use their USDe balance sheet to support the liquidity in the ecosystem.

Young made it pretty clear that taking  a step back from USDH does not mean that they are leaving Hyperliquid. But instead they want to focus on the products that bring good to the community directly.

Native Markets Takes the Lead

Now that Ethena is out, Native Markets is looking like the main competition to issue USDH. Their plan is made for Hyperliquid itself. They want to create USDH on HyperEVM and use some of that money to grow the ecosystem more.

Half of the interest from the USDH reserves will go to HYPE token buybacks. And the other half will support Hyperliquid apps and HIP-3 market. This plans aim is to give rewards to the users and help the platform to grow.

Why This Matters for Hyperliquid

Ethena’s pull back shows just how much the community’s decisions actually matters. Hyperliquid’s ecosystem depends on the feedback it gets from its members. Decisions like this shows how the project should match what the community really cares about. 

The last vote on USDH will be quite important. It will be the one who decide which team issues the stablecoin and how the platform actually grows in the future. Investors, users and also developers are all keeping an eye on this well. 

Looking Ahead

This decision from Ethena Labs’ also shows how crypto projects adjust well to change. Opinions from the community can make the plans change pretty quickly. This is actually one of the key things of decentralized ecosystem.

Native Markets now has a good chance to lead Hyperliquid’s stablecoin. Meanwhile, Ethena is continuing to build products that help the platform. Their work on savings, cards and the HIP-3 markets will still have a pretty big impact.

Overall, this USDH race shows how feedback, being open and also planning well matters quite a lot in crypto. It is a reminder for everyone that the feedback from the community can make some pretty big decisions.