September 10th• 3 min read
Paxos Upgrades USDH Proposal with PayPal & Venmo to Boost Hyperliquid Bid
Paxos Labs has revamped its pitch to issue Hyperliquid’s USDH stablecoin, now including integration with PayPal and Venmo and offering compelling incentive mechanisms tied to platform growth. These strategic upgrades aim to align Paxos’ success with Hyperliquid’s, making its proposal more attractive amid stiff competition.
Key takeaways
🧾 Fintech integration: USDH and HYPE would be natively supported on PayPal, Venmo, Xoom, and Checkout—bringing global reach and real-world utility.
💰 $20M ecosystem pledge: Paxos is offering $20 million in incentives to fuel adoption of USDH and HYPE.
🪙 Aligned incentives: No Paxos fees until $1B TVL; post-$5B, fees are capped at 5% and paid in HYPE—fully ecosystem-aligned.
🛡️ Regulatory edge: Paxos highlights its global licenses in the U.S., EU, and Singapore—positioning it for compliant scale.
🏁 Competitive field: Paxos competes with Ethena, Agora, Frax, and Sky—all bringing different visions for the future of USDH.
Deep dive
Paxos’ updated proposal brings fintech depth to the bidding war for USDH, offering easy crypto-to-fiat transitions via PayPal’s massive user and merchant base.
By tying its fee structure directly to Hyperliquid's milestones—and funneling rewards back into HYPE—it’s signaling long-term commitment rather than quick profit.
Regulatory readiness in key jurisdictions gives Paxos a unique scaling advantage.
But the race is fierce: firms like Ethena bring institutional backing with synthetic reserves linked to BlackRock’s BUIDL fund; Agora, Frax, and Sky try other creative alignments with community or yield incentives.
Hyperliquid validators will soon choose which approach best serves its ecosystem's growth and decentralization goals.
Polaris insights AI-generated
Disclaimer: This article may contain content generated or assisted by AI, based on information from public sources. While we aim for accuracy, no content should be taken as financial or trading advice. Always do your own research and consult a professional before making investment decisions. Markets are volatile and involve risk.
