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4w ago

Ethena Exits Hyperliquid’s USDH Selection as Native Markets Emerges Front-Runner

Validator pushback over Ethena’s fit prompted the exit, refocusing the contest on native builders.

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Hyperliquid

Overview

  • Ethena founder Guy Young said the team withdrew after direct discussions with validators and community members who questioned its non‑native status and broader ambitions.
  • Prediction market data showed Native Markets’ winning odds near 94.8% on Polymarket after the withdrawal, with Paxos at about 5.2%.
  • Ethena plans to shift resources to Hyperliquid‑native products, including hUSDe, USDe‑enabled savings and cards, hedging flows, HIP‑3 market features, and equities perpetuals.
  • The withdrawn bid proposed issuing USDH via Anchorage Digital Bank’s USDtb collateralized by BlackRock’s BUIDL fund, pledging 95% of reserve revenue to Hyperliquid and at least $75 million for ecosystem incentives.
  • Some industry voices, including Dragonfly’s Haseeb Qureshi, criticized the process as favoring Native Markets, while co‑founder Max Fiege said the team has been addressing validator questions over the past week.