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Ethena Labs Withdraws Proposal Following Validator and Community Discussions

Ethena Labs Withdraws Proposal Following Validator and Community Discussions

Ethena Labs steps back from Hyperliquid’s USDH stablecoin competition, citing community concerns about its non-native team and broader product goals.

HYPE
USDE
ENA

Fact Check
Multiple independent news sources (Yahoo Finance, CCN, Blockonomi, Cryptorank) and a primary source (Ethena Labs' official X account) directly confirm that Ethena Labs withdrew its proposal. These sources explicitly state the reason was pushback, concerns, and feedback from the community and validators.
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Summary

Ethena Labs has withdrawn its proposal to issue Hyperliquid’s USDH stablecoin, following feedback from the community and validators. Founder Guy Young explained that concerns over the company’s non-native status, broader product scope, and lack of a single exchange partner led to the decision. Ethena Labs will now focus on developing its synthetic dollar product hUSDe and other financial services within the Hyperliquid ecosystem.

Terms & Concepts
  • USDH: A proposed stablecoin on the Hyperliquid platform, intended to maintain a value pegged to the U.S. dollar.
  • hUSDe: Ethena’s native synthetic dollar product designed to provide stable value through blockchain mechanisms.
  • HIP-3: A Hyperliquid improvement proposal standard for introducing new features or services on the platform.