Paxos is competing to become the issuer of the USDH stablecoin under HyperLiquid, committing to a partial buyback of HYPE.

September 7th: The stablecoin issuer Paxos has put forward a proposal titled "Paxos-Supported USDH Issuance," vying to become the issuer of HyperLiquid's stablecoin USDH. Paxos has declared that if selected as the USDH issuer, they will carry out a revenue-sharing plan. Paxos will allocate 95% of the interest from the USDH-backed reserve to repurchase HYPE and redistribute it to the ecosystem plan, partners, and users. Earlier on September 5th, Hyperliquid announced the release of the token symbol USDH for stablecoin issuance. Currently, the USDH trading pair symbol held by the Hyperliquid protocol will be released through a transparent on-chain process via validator voting. After the next network upgrade, validators will be able to vote on whether to permit a specific user address to purchase the USDH symbol. The voting process will occur entirely on-chain and be completed through Hyperliquid L1 transactions, similar to the delisting voting process. Teams that are interested in applying for this symbol can submit a proposal on the new forum, including the user address to be used for deploying the USDH symbol upon confirmation by the statutory number of validators. It is crucial to note that even if a team is approved, they still need to participate in regular spot deployment gas auctions.