USDH PROPOSALS EXPLAINED

Summary from the TLDR Crypto newsletter

There are nine different proposals for Hyperliquid's USDH stablecoin partnership, each offering distinct approaches to backing, yield allocation, and ecosystem integration. The proposals showcase varying risk profiles, from conservative T-Bills and cash backing to more complex structures like Ethena's delta-neutral strategies and Sky's diversified RWA portfolio, with most committing significant portions of yield revenue to the Hyperliquid ecosystem. Regulatory approaches differ substantially, with established players leveraging existing GENIUS Act compliance while newer entrants like Native Markets plan to use Stripe's Bridge infrastructure for regulatory coverage. The USDH proposal battle is under controversy for seemingly favoring Native Markets from the beginning and being yet another instance of decentralization theatre.