Paxos competes to become the issuer of HyperLiquid's stablecoin USDH, promising to buy back HYPE with part of the proceeds.

On September 7th, stablecoin issuer Paxos released a proposal titled "USDH Issuance Supported by Paxos", competing to become an issuer of stablecoin USDH under HyperLiquid. Paxos said that if elected as a USDH issuer, it will implement a revenue-sharing plan. Paxos will allocate 95% of the interest from the reserves supporting USDH to repurchase HYPE and redistribute it to ecosystem programs, partners, and users.
Prior to the news on September 5th, Hyperliquid announced that it will release the USDH token symbol for stablecoin issuance. The USDH trading pair symbols currently reserved by the Hyperliquid protocol will be released in a transparent on-chain process through validator voting. After the next network upgrade, validators will be able to vote on whether to allow a user address to purchase the USDH symbol. The voting process takes place entirely on-chain and is completed through the Hyperliquid L1 transaction in the same way as the removal vote. Teams interested in applying for the symbol can submit proposals in the new forum and need to include the user address that will be used to deploy the USDH symbol if elected and confirmed by a quorum of validators. It is important to note that even if the team is approved, it must still participate in the regular spot deployment gas auction.