The primary remaining open question (and really all that matters) is how these USDH ticker applicants plan to get to 5bn supply Without real scale, USDH will drive little new for Hyperliquid than USDC is already bringing--I’m skeptical that giving rebates to users or buying HYPE with fees in the early days is enough of a path forward to make a dent here Think about it: if whoever turns out to be the USDH team is earning 4% APY via treasuries backing USDH (assuming USDH will end up being a fiat-backed stable) and decides to give 50% of that revenue to 5 HIP-3 exchanges in order to grow by integration with about 100m USDH supply, that will be: >2% net going to HIP-3 exchanges >Assume ~100m USDH evenly spread across the exchanges >20m USDH per exchange each getting 0.4% boost = $80k per year per exchange Even if USDH goes to $1bn, that’s only $800k per year per exchange. These incentive numbers could obv be adjusted if the USDH team wants to take an aggressive power-law-style bet on...
Something some Hyperliquid community members seem to be discounting is that the hard work on USDH doesn’t begin with this ticker proposal setup; it only begins after
Yes, there are new benefits in place to complement the launch of a new quote asset for Hyperliquid markets (HIP-3 incoming, fee reduction of spot quote asset swaps, etc), but unseating USDC will be far from automatic, and the primary value prop of just buying HYPE and returning fees to users will not be enough to get USDH to billions in supply–we saw this firsthand with USDhl, which buys HYPE with 100% of fees generated and then distributes 100% of this HYPE to users
Scaling to billions will require a full-force effort and much more than just appealing to a narrative alone
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