At the core of its revised pitch is PayPal, which would bring Hyperliquid’s USDH stablecoin to millions of users through its checkout system, Venmo, and fee-free on/off-ramps. The package even includes a $20 million incentive fund to fuel HYPE token adoption.

Reinvesting Revenue to Grow USDH

Instead of claiming profits early, Paxos promised validators that revenue from USDH would be reinvested back into the ecosystem until the stablecoin reaches a $1 billion footprint. Even once USDH grows larger, Paxos said its share would be capped, ensuring its upside is tied directly to Hyperliquid’s success.

Rival Bids Intensify the Contest

The pitch arrives in a crowded field. Frax Finance has proposed anchoring USDH with its frxUSD, which carries support from BlackRock’s BUIDL fund. A rival group — Agora, Rain, and LayerZero — went even further, offering to hand 100% of revenue back to the ecosystem. Ethena Labs and Sky also threw their hats into the ring, ensuring validators face tough choices when voting opens September 14.

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Beyond payments, Paxos wants to position Hyperliquid as an enterprise-grade liquidity layer. Brokerages and fintechs could plug into the network through “builder codes,” while consumer-facing apps would eventually offer an “Earn” product built on USDH. On the compliance side, Paxos pointed to its European regulatory clearance and pledged to back USDH reserves with PYUSD for added credibility.

What’s clear is that Hyperliquid has become a prize worth fighting for. Once a niche exchange, it’s now at the center of a high-stakes battle that could shape the future of stablecoins in DeFi.

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