Ethena, the team behind the USDe synthetic dollar protocol, has withdrawn its bid to issue Hyperliquid’s USDH stablecoin, conceding to concerns raised by the Hyperliquid community and validators. The decision, announced in a Thursday post on X, follows direct discussions with community members, where concerns were raised about Ethena not being a Hyperliquid-native project.
In its statement, the Ethena team acknowledged the pushback and congratulated Native Markets, now seen as the frontrunner in the race to issue USDH. While some are complaining about the lack of credibility of Native Markets, I think their success here perfectly embodies everything that is special about Hyperliquid and its community, said, founder of Ethena Labs. He continued, It is a level playing field where emergent players can win the hearts of the community and are given a fair shot at succeeding.
Major shift in the bidding process
Ethena’s withdrawal marks a significant change in the competitive bidding process for USDH, Hyperliquid’s upcoming native stablecoin. With Ethena out, prediction markets on Polymarket are now giving Native Markets a 92% chance of winning, with Paxos in second place at roughly 7%, as of the latest data.
Ongoing questions about Native Markets’ credibility
Despite Native Markets’ overwhelming momentum, questions about its credibility remain a topic of debate. As the USDH stablecoin race intensifies, community trust continues to play a crucial role in determining the future of the project. While Native Markets has gained significant support, some community members still voice concerns about its long-term reliability and approach.