What is USDH (USDH)?

Deep Dive

1. Purpose & Value Proposition

USDH was created to anchor Hyperliquid’s decentralized exchange (DEX) ecosystem, replacing external stablecoins that divert value away from the platform. By minting USDH natively on HyperEVM and bridging it to HyperCore, it eliminates cross-chain risks while keeping all transactions on Hyperliquid’s ledger.

The stablecoin’s revenue-sharing model ensures ecosystem alignment: half its reserve yield (from assets like BlackRock’s TTTXX money market fund) directly funds HYPE buybacks, while the other half incentivizes growth via partnerships with DeFi protocols and trading incentives.

2. Technology & Architecture

USDH leverages Hyperliquid’s HyperEVM for minting and HyperCore (a custom L1) for settlements. Its “CoreRouter” smart contract enables atomic swaps between chains, allowing users to mint USDH on HyperEVM and use it instantly on HyperCore for trading.

Compliance is prioritized through Bridge (a Stripe subsidiary), which handles fiat on/off-ramps and ensures adherence to the GENIUS Act—a U.S. regulatory framework for stablecoins effective from 2027.

3. Ecosystem Integration

As Hyperliquid’s Aligned Quote Asset, USDH offers traders:
- 20% lower taker fees and +50% rebates for makers.
- Native integration with Hyperliquid’s spot and derivatives markets, including USDH-margined perpetual contracts.
- Liquidity mining programs (e.g., @HypurrFi) offering yields to bootstrap adoption.

Conclusion

USDH is Hyperliquid’s bid to internalize stablecoin economics, combining regulatory readiness with deep ecosystem incentives. By aligning reserve yields with protocol growth, it seeks to create a self-reinforcing loop of liquidity and value accrual.

Can USDH’s hybrid reserve model balance transparency and scalability as adoption grows?