Native Markets wins the issuance rights for Hyperliquid USDH stablecoin, and the fairness of the bidding has sparked controversy in the community.

After winning the community vote, the Native Markets team officially obtained the issuance rights for the Hyperliquid exchange USDH stablecoin. Despite the victory, the bidding process has drawn strong criticism from executives in the encryption industry, who questioned the fairness of the selection process and sparked an in-depth discussion about the future direction of the stablecoin industry.

Native Markets Win USDH Bids

According to the results of the community vote, the Native Markets team officially received the ticket code for the Hyperliquid stablecoin USDH last Sunday. The founder of the project, Max Fiege, announced the next steps on social media, including:

• Token Deployment: In the coming days, the first Hyperliquid Improvement Proposal (HIP) will be deployed for USDH and its ERC-20 token standard on the Ethereum network.
• Testing Phase: Initially, testing will be conducted with a group of initial users, allowing a maximum of 800 USD for each transaction's issuance and redemption.
• Full Opening: Subsequently, the USDH/USDC spot order book will be opened, and the amount restrictions on issuance and redemption will be lifted.

The victory of Native Markets occurred after its main competitor, Ethena Labs, withdrew from the race last Thursday. After Ethena's exit, Native Markets' chances of winning on the prediction market Polymarket soared to over 99%.

Controversy and Accusations Arising from the Bidding Process

The USDH bidding this time attracted close attention from the entire encryption community, but its results have triggered complex emotions among industry executives. Haseeb Qureshi, managing partner of the well-known venture capital firm Dragonfly, said on Tuesday that he "is starting to feel that the USDH request for proposal (RFP) is a bit like a farce."

Qureshi added, "I heard from multiple bidders that all validators are not interested in anyone other than Native Markets. This isn't even a serious discussion; it seems like some sort of backdoor deal has already been reached." His remarks reveal the widespread skepticism in the industry regarding the fairness of this bidding process.

Debate: Will stablecoins become abstract in the future?

This bidding has also sparked an in-depth discussion about the future of the stablecoin industry. Mert Mumtaz, CEO of RPC node provider Helius, believes that this bidding reveals that stablecoins have become commoditized.

Mumtaz speculates that in the future, the ticket codes for USD stablecoins will become abstract, and the front-end user interface of the exchange will only display a generic "dollar" symbol, while users will not see or interact with it. He believes that the exchange will handle the swapping between different stablecoins in the background, providing users with a smoother experience.

Conclusion

The victory of Native Markets has brought native stablecoins to Hyperliquid, but the controversy sparked by this event also highlights the tension between transparency and centralized control in decentralized governance. The debate within the industry regarding the fairness of the bidding process and the profound reflection on the future direction of stablecoins are likely to have a long-term impact on the decisions of similar projects in the future.