But according to the co-founder of Sky, formerly MakerDAO, the next generation of stablecoins must do far more. “The best stablecoin offers so much more than just a stable medium of exchange,” he explained. “It should also deliver efficient returns, generated by actively developing and growing the ecosystem it lives in.”
Sky is not just talking. With more than 8 billion USDS in circulation and over 13 billion in diversified collateral, it is the fourth-largest stablecoin project in the world. Now, Sky is turning its attention to Hyperliquid with the launch of USDH, a new stablecoin designed to give traders and investors tools that go beyond stability.
What USDH Brings to Hyperliquid
One of the biggest advantages of USDH is access to deep liquidity. Sky can provide $2.2 billion in instant USDC redemptions, making it easy for users to swap in or out without friction. Liquidity is key in crypto, and this kind of access helps build confidence for both traders and institutions. USDH will also be natively multichain through LayerZero. This means it can move across blockchains securely, expanding use cases while reducing risks often seen in third-party bridges. For Hyperliquid, that means the stablecoin can travel anywhere users need it.
The numbers matter too. USDH holders on Hyperliquid can currently earn 4.85 percent returns, higher than the average yield on US Treasury bills. These returns are backed by Sky’s proven risk management system, modeled on frameworks banks use to manage capital. That kind of consistency is rare in crypto, where projects often chase unsustainable yields.
USDH powered by Sky
The best stablecoin offers so much more than just a stable medium of exchange – it should also deliver highly efficient returns, generated by actively developing, building and growing the ecosystem it lives in.
By using Sky to power USDH, the Hyperliquid…
— Rune (@RuneKek) September 8, 2025
Security is another area where Sky stands out. It has been battle-tested for more than seven years, surviving multiple bear markets without losses for stablecoin holders. Importantly, Sky is also the only protocol with an official credit rating from S&P, giving it credibility that rivals lack.
Building a DeFi Future Together
Beyond returns, Sky is investing in Hyperliquid’s long-term growth. It plans to seed a $25 million “Hyperliquid Star” project that would fund new DeFi tools, with tokens farmed exclusively on Hyperliquid. Sky also intends to move its buyback system, which channels more than $250 million in annual profits, directly onto Hyperliquid. This shift could boost liquidity and show that Hyperliquid is a natural hub for protocol buybacks. Here you can find more info about Sky’s plans for USDH:
Additional details regarding Sky USDH proposal
I think the Sky USDH proposal is super exciting and I’m really glad to see the overwhelming positive response!! Sky has not before publicly committed to working with Hyperliquid, but had several projects under way in stealth mode.…
— Rune (@RuneKek) September 9, 2025
This model isn’t just theory. A similar Sky initiative called Spark has already grown into a DeFi hub with over $1.2 billion in total value locked. Hyperliquid could follow a similar path, with USDH at the center of its ecosystem.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies presented are the thoughts and opinions of the writer/reviewers, and their risk tolerance may differ from yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments; therefore, please conduct your due diligence. Copyright Altcoin Buzz Pte Ltd.
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