Sky Proposes 4.85% Yield and $2.2B USDC Liquidity to Secure Hyperliquid USDH Issuance
DeFi protocol Sky (formerly MakerDAO) has submitted a proposal to become the issuer of Hyperliquid’s USDH stablecoin, offering 4.85% yield on USDH holdings and $2.2 billion in USDC for instant off-chain redemptions via its Peg Stability Module. Sky also pledges a $25 million “Hyperliquid Star” growth fund, multichain support through LayerZero, Basel III–compliant risk frameworks and leverages its S&P B- credit rating. With $8 billion circulating in USDS and DAI and $13 billion collateral backing, Sky plans to allocate over $250 million of its profits to build SKY liquidity on Hyperliquid. Co-founder Rune Christensen highlighted the alignment on real profits and decentralization. Since the bid, Hyperliquid’s native token HYPE has jumped 12% to $53.36 and trading volume is up 141% to $397 million. Validators will vote on September 14 among competitors including Paxos, Frax Finance, Agora and Native Markets, underscoring intensifying competition for stablecoin issuance.
Bullish
Sky’s bid to back USDH with $2.2 billion in USDC liquidity and a 4.85% yield, underpinned by its $8 billion balance sheet and $250 million liquidity commitment, significantly boosts USDH’s credibility. This proposal has already driven a 12% surge in HYPE price and a 141% jump in volume, signaling strong trader interest. In the short term, the approaching September 14 vote and competitive bidding are likely to fuel further bullish momentum for HYPE. Over the long term, Sky’s robust backing and decentralized infrastructure support could stabilize USDH liquidity and drive broader adoption, underpinning sustained demand for HYPE.