Hyperliquid has announced the launch of the USDH token to be used for issuing dollar-backed stablecoins within its ecosystem. The process will become part of validator voting following an upcoming network upgrade.
Validator Voting Process
According to the Discord announcement, validators will vote to select the team capable of creating and deploying a Hyperliquid-native stablecoin using the USDH ticker. Interested teams can propose their bids in the specified forum, including the user address that would execute the deployment if selected.
USDH is seen as a high-demand canonical token symbol and aims to create a compliant USD stablecoin aligned with Hyperliquid’s ecosystem principles. After being chosen by validators, the selected team will have to undergo the standard gas auction for deployment.
Growth of Stablecoins
Stablecoins have shown significant growth across the crypto market. Last December, Ripple launched its compliant stablecoin RLUSD, which is pegged to the U.S. dollar at a 1:1 ratio. This initiative focuses on regulatory compliance, creating reliable solutions for users.
Development of Decentralized Finance
Alongside stablecoins, decentralized finance (DeFi) is also experiencing record highs. Current information indicates that the total value locked (TVL) in DeFi has risen by 72% year-to-date, reaching over $127 billion, driven by institutional adoption of stablecoins and tokenized real-world assets.
The USDH token launch through validator voting highlights the ongoing growth and innovation in the fields of stablecoins and decentralized finance.
