Sky Proposes Backing Hyperliquid’s USDH Stablecoin, Offering Yield and Option for GENIUS Act Compliance

• Sky proposes a 4.85% yield on USDH holdings for Hyperliquid users.

• USDH would be natively multichain via LayerZero and convertible to Sky’s USDS with a 4.75% yield.

• Sky commits $25 million to a DeFi growth project on Hyperliquid and offers GENIUS Act compliance options.

Sky USDH proposal: Sky offers a 4.85% yield on USDH for Hyperliquid, multichain support, and a $25M growth fund — learn what this means for stablecoin users.

What is Sky’s USDH proposal?

Sky’s USDH proposal is a bid to issue and manage USDH for the Hyperliquid exchange, offering a customizable, natively multichain stablecoin with a promised 4.85% yield on platform holdings and convertibility to a yield-bearing USDS variant.

How would Sky deliver yield and multichain support for USDH?

Sky plans a 4.85% return for USDH held on Hyperliquid, citing yields above U.S. T-bill rates. Conversion to Sky’s USDS would provide a 4.75% native yield. Multichain functionality would use the LayerZero cross-chain protocol for seamless token movement.

Sky, formerly Maker, is the fifth major crypto protocol to propose to help issue and manage USDH, a planned stablecoin from Hyperliquid.

Sky, the protocol behind USDS and Dai, has submitted the fifth major proposal to partner with Hyperliquid on a native USDH stablecoin. The Sky pitch from co-founder Rune Christensen outlines backing, yield mechanics, multichain support, and a dedicated fund to accelerate DeFi growth on the Hyperliquid network.

In his proposal, Christensen detailed a framework that would allow Hyperliquid to offer USDH with an above-market yield and with customization options. The plan emphasizes institutional-grade tooling while preserving community governance over final parameters.

Why does Sky emphasize GENIUS Act compliance and customization?

Sky highlights the option to tailor USDH to regulatory frameworks such as the GENIUS Act, which restricts stablecoin yield. Offering compliance modes allows Hyperliquid to choose a configuration that aligns with legal constraints while preserving on-chain utility and optional yields where permitted.

Sky promises USDH yield, option for GENIUS Act compliance

Christensen’s proposal states Hyperliquid would receive a 4.85% return on all USDH held on its platform. Sky also says USDH could convert to a USDS variant yielding 4.75% and be natively multichain through LayerZero.

The proposal includes a $25 million commitment to create an autonomous project to grow DeFi activity on Hyperliquid. Sky frames the initiative as a way to incentivize ecosystem builders and to issue exclusive tokens that could significantly expand utility and liquidity for the exchange.

Sky’s bid is the fifth for Hyperliquid — who else is involved?

Sky’s proposal joins at least four other bids following Hyperliquid’s public request for teams to pitch a native stablecoin with the ticker USDH. Competing proposals include initiatives from new ventures and established stablecoin issuers and infrastructure firms. Names in the public discussion include Native Markets, Frax, Paxos, and Agora with fintech backing. These mentions are provided as plain text references to public proposals.

Who will decide the winning proposal and when?

Hyperliquid validators will vote on preferred proposals after the network’s next upgrade. The project has not published a firm upgrade date, leaving the timeline dependent on governance coordination and technical readiness.

Frequently Asked Questions

What yield does Sky promise for USDH holders on Hyperliquid?

Sky commits to a 4.85% platform yield on USDH held on Hyperliquid and offers a convertible USDS variant yielding 4.75%, positioning the program above prevailing T-bill rates in its proposal.

How will USDH be made multichain?

Sky plans to leverage the LayerZero cross-chain protocol to enable natively multichain USDH transfers, allowing token movement and usability across supported chains without wrapping or third-party bridges.

Key Takeaways

• High yield offering: Sky proposes a 4.85% return on USDH held on Hyperliquid, outperforming benchmark T-bill yields in the proposal.
• Multichain and convertibility: USDH would be natively multichain through LayerZero and convertible to a yield-bearing USDS.
• Ecosystem growth: Sky pledges $25 million to build DeFi on Hyperliquid, plus customization options for regulatory compliance.

Conclusion

Sky’s proposal for USDH combines yield, multichain engineering, and a sizable growth fund to attract builders and liquidity to Hyperliquid. The bid emphasizes flexibility — including GENIUS Act compliance — and awaits a validator vote after Hyperliquid’s next network upgrade. Watch governance timelines for the final selection.