Paxos is competing to become the issuer of the USDH stablecoin under HyperLiquid, committing to a partial buyback of HYPE.

BlockBeats News, September 7th: Stablecoin issuer Paxos has released a proposal titled "Paxos-Supported USDH Issuance," competing to become the issuer of HyperLiquid's stablecoin USDH. Paxos has stated that if selected as the USDH issuer, they will implement a revenue-sharing plan. Paxos will allocate 95% of the interest from the USDH-backed reserve to repurchase HYPE and redistribute it to the ecosystem plan, partners, and users.

Earlier on September 5th, Hyperliquid announced the release of the USDH token symbol for stablecoin issuance. Currently, the USDH trading pair symbol held by the Hyperliquid protocol will be released through a transparent on-chain process via validator voting. After the next network upgrade, validators will be able to vote on whether to allow a particular user address to purchase the USDH symbol. The voting process will take place entirely on-chain, completed through Hyperliquid L1 transactions, similar to delisting voting. Teams interested in applying for this symbol can submit a proposal on the new forum, including the user address to be used for deploying the USDH symbol upon confirmation by the statutory number of validators. It is important to note that even if a team is approved, they must still participate in regular spot deployment gas auctions.