OpenEden and BitGo Compete to Manage Hyperliquid’s USDH Stablecoin Reserves

TLDR

• OpenEden plans to distribute USDH yield to the Hyperliquid ecosystem, including HYPE buybacks.
• BitGo aims to use US dollar-backed assets and Chainlink for USDH minting and redemption.
• Native Markets leads the vote with a proposal to split USDH reserve proceeds for buybacks.
• Hyperliquid validators will vote on USDH proposals, with eight contenders vying for the role.

OpenEden and BitGo have joined the growing list of contenders vying to manage Hyperliquid’s upcoming native stablecoin, USDH. With their entry, the number of bidders now stands at eight. Hyperliquid validators are set to vote on the USDH proposal from Thursday to Sunday, as each contender seeks to secure the right to manage the stablecoin’s $5.9 billion reserve.

OpenEden’s Proposal and Strategic Partnerships

OpenEden, a platform focused on real-world asset tokenization, outlined its plan for the USDH reserves earlier this week. If selected, OpenEden promises to distribute all generated yield from the USDH reserves to the Hyperliquid ecosystem. This would include periodic buybacks of Hyperliquid’s HYPE token. Additionally, OpenEden intends to use proceeds from minting and redeeming USDH to further support HYPE token buybacks, distributing them to Hyperliquid validators.

To further incentivize participants, OpenEden has committed to allocating 3% of its native EDEN token supply, with the potential for future increases. OpenEden has also partnered with major financial players, including The Bank of New York Mellon for custody services, and Chainlink, AEON Pay, and Monarq Asset Management for broader adoption and integration.

BitGo’s Approach and Use of US Dollar-Backed Assets

BitGo, a crypto infrastructure provider, has put forward a different strategy for managing USDH. The company plans to use US dollar-backed liquid assets, including bank deposits and short-term treasury bills, to facilitate the minting and redemption of USDH.

BitGo’s proposal highlights its expertise in handling regulatory compliance and financial infrastructure. The company intends to leverage Chainlink’s cross-chain interoperability protocol to ensure smooth asset transfers between different blockchains. BitGo also aims to use the yield from the reserves to purchase and stake HYPE tokens, while charging a 0.3% fee on the total reserves for its services.

Native Markets Currently Leading the Vote

At present, Native Markets holds the most votes, with 33.73% of the delegate stake supporting its proposal. Native Markets, co-founded by Max Fiege, suggests splitting the proceeds from the USDH reserves. Half would go towards HYPE token buybacks, while the other half would support an Assistance Fund. However, the proposal has drawn criticism from some community members.

Notably, Haseeb Qureshi of Dragonfly Ventures expressed concerns about Native Markets’ bid, claiming that many validators appear to favor this proposal over others. This has sparked speculation about possible backroom dealings. In contrast, Nansen CEO Alex Svanevik has denied such claims, stating that they, along with allies, have encouraged a competitive process by engaging with all bidders.

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