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Hyperliquid allocates $10M grant to devs as USDH gives way to USDC

ByIbiam WayasIbiam Wayas
2 mins read
Hyperliquid allocates $10M grant to devs as USDH gives way to USDC
  • Devs affected by the sunsetting of USDH will receive $10 million in grants.
  • USDH is being phased out for USDC.
  • The developers have until July to complete the migration.

Hyperliquid Foundation will allocate $10 million in grants to developers affected by the sunsetting of its native stablecoin, USDH, in favor of USDC. 

The news came on Sunday, weeks after the Foundation had unstaked 250,001 HYPE, worth $16.9 million, from its grants wallet. 

Per the announcement, the grants will be distributed to HIP-3 deployers, HIP-1 deployers, and other developers who built around USDH. Hyperliquid said the aim is to “help offset migration costs and recognize the work involved in an orderly transition.”

HIP-1 and HIP-3 grants will be distributed based on auction deployment costs, while HyperEVM grants are based on the affected USDH TVL. Teams migrating affected markets to USDC will receive a larger allocation than those simply winding down USDH markets.

All the recipients are under an agreement to commit to orderly migration and wind-down before the end of July.

USDH gives way to USDC

USDH is being shut down after its original developer, Native Markets, granted Coinbase the right to purchase USDH brand assets in May, making way for USDC as a primary asset on Hyperliquid.

Both Circle and Coinbase had partnered with Hyperliquid to adopt the new AQAv2 for USDC, designating USDC as a “protocol-aligned stablecoin,” Cryptopolitan reported.

AQAv2 is a framework aimed at aligning exclusive stablecoins, such as USDC, with the Hyperliquid network. Only then can such stablecoins be used as “aligned quote assets” across the platform’s perpetual and spot markets.

Validators approved the proposal for AQAv2 on June 12th, with 19 of 26 nodes (69%) voting in favor. Following the approval, Circle moved $4.4 billion in USDC to Coinbase via AQAv2, the single largest USDC transaction ever recorded. 

HYPE market update

Trading activities have continued to swell across Hyperliquid’s HIP-3 and HIP-4 markets.

HIP-3 markets now make up 37.2% of all Hyperliquid perpetual trading volume. Meanwhile, total liquidation across the markets has also increased to over $3.33 billion, according to data from ASXN. 

HIP-3 total liquidations. Source: ASXN

Elsewhere, data shows that HIP-4 outcome markets recorded $29.9 million single-day volume, with a 360% increase week-over-week.

At the time of writing, HYPE was up 1% on the 24-hour timeframe, trading at $63.42. 

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FAQs

What is Hyperliquid's $10M developer grant for?

The Hyper Foundation is distributing $10 million to developers and protocols that built around the USDH stablecoin, which is being replaced by USDC as Hyperliquid's primary quote asset under the AQAv2 framework.

What is AQAv2 on Hyperliquid?

AQAv2 is a stablecoin alignment framework that designates certain stablecoins like USDC as default quote assets on Hyperliquid's markets, with deployers sharing roughly 90% of reserve yield revenue back to the protocol for HYPE token buybacks.

How much revenue could AQAv2 generate for Hyperliquid?

With over $5 billion in USDC on the platform, Hyperliquid estimates AQAv2 could produce up to $200 million in additional annual revenue, which flows into the Assistance Fund to purchase HYPE tokens from the open market.

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Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Ibiam Wayas

Ibiam Wayas

Ibiam Wayas has covered the crypto news beat since 2019. He studied Computer Science at National Open University of Nigeria. His work has appeared on various crypto news platforms, including Coinfomania, Crypto News Australia, and AltcoinBuzz. Drawing on his background in Computer Science, he now focuses on crypto, robotics, and longevity news.

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