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Ethena Exits Hyperliquid’s USDH Contest, Clearing Path for Native Markets Ahead of Sept. 14 Vote

Validator pushback over Ethena’s alignment drove the withdrawal.

Hyperliquid

Overview

  • Ethena founder Guy Young said the team withdrew its USDH bid after direct conversations with validators and community delegates.
  • Community sentiment favors a native issuer, with prediction market Polymarket pricing Native Markets’ chances at 94.8% following Ethena’s exit.
  • A stake-weighted validator vote on Sept. 14 remains the formal mechanism to select the USDH issuer.
  • Ethena plans Hyperliquid‑native products including hUSDe, USDe‑enabled savings and card tools, hedging flows, HIP‑3 market designs, and equities perpetual swaps.
  • Ethena’s shelved proposal had routed issuance through Anchorage’s USDtb tied to BlackRock’s BUIDL fund and pledged 95% of reserve revenue to Hyperliquid.