• Hyperliquid proposes USDH stablecoin, pending validator vote for approval and development.
• HYPE jumps 3.4%, trading near $47 after announcement.
• Protocol update slashes fees by 80% for dual-currency spot market pairs.

Momentum swept through the crypto market after Hyperliquid revealed plans for USDH, a proposed dollar-pegged stablecoin. The announcement, made through the exchange’s official Discord, immediately sparked excitement among traders. Within hours, HYPE, the exchange’s native token, climbed more than 3% intraday. Prices touched $47 on the daily chart, according to CoinMarketCap. Investors cheered the news, though the stablecoin has yet to appear on the official Hyperliquid website.

Validators Hold the Keys to USDH

Hyperliquid designed the process to run directly on-chain. Validators will not only approve USDH’s design but also choose the development team. The model reflects Hyperliquid’s transparent approach to governance, echoing the asset delisting process already familiar to the community. For now, the proposal awaits approval.

Despite the uncertainty, market response was fast and strong. The jump in HYPE showed confidence in the project’s direction. Traders clearly believe USDH has the potential to expand Hyperliquid’s role in the decentralized finance ecosystem. The bigger question is what kind of stablecoin model USDH might follow.

Traditional centralized tokens like USDC and USDT dominate the space, especially after recent legislation under the Genius Act. But many in the market want decentralized alternatives that offer more than a simple peg. That desire has inspired projects like USTT, YLD, and STBL. Each uses a dual-token system, championed by Tether co-founder Reeve Collins.

One token holds the peg, while the other captures yield from reserves. Such a model adds transparency and removes intermediaries. It also lets users directly share in reserve-generated returns, whether from tokenized Treasuries or money market funds.

Hyperliquid Expands with Fee Cuts and Transparency Updates

The stablecoin proposal was not the only announcement. Hyperliquid also introduced sweeping updates to trading costs and transparency. Maker, taker, and user fees for dual-currency spot market pairs will drop by 80%. Public spot quotes will also become available, a move set to improve clarity across the platform. These updates aim to strengthen liquidity and attract more participants.

To activate the new trading pairs, projects must lock a set amount of HYPE tokens. While the collateral threshold remains undisclosed, the requirement reinforces HYPE’s role at the heart of the ecosystem. By slashing fees and boosting visibility, Hyperliquid is giving traders fewer reasons to look elsewhere. Pair that with the excitement around USDH, and the exchange positions itself as a more competitive force in DeFi.

The market’s positive reaction reflects this dual narrative: lower trading costs and a bold push into stablecoins. HYPE’s climb above $47 may only be the start if validators approve USDH. For traders and investors, Hyperliquid’s latest moves show ambition, strategy, and the willingness to challenge established giants.