0xYieldFarmooor

Coinbase has announced its plan to activate AQAv2 on USDC as the treasury deployer, with Circle serving as the technical deployer responsible for CCTP and native cross-chain infrastructure. Both Coinbase and Circle have committed to stake HYPE to activate AQAv2. As part of this transition, Native Markets has agreed to terms granting Coinbase the right to purchase the USDH brand assets. With Coinbase, in its role as treasury deployer, sharing the vast majority of reserve yield revenue with the protocol, USDC will become the most aligned stablecoin on Hyperliquid. As a result, canonical outcome (HIP-4) markets will use USDC as the quote asset in a future network upgrade. User and builder feedback has been consistent that fragmentation leads to degraded experience; now, the community no longer needs to choose between liquidity and protocol alignment. The pioneering work of Native Markets in launching USDH as the first production-scale stablecoin sharing yield directly with a protocol in a purely onchain implementation made AQAv2 possible. The learnings and mechanics pioneered by USDH will live on in AQAv2. The Hyper Foundation will give grants to eligible HIP-3 deployers, HIP-1 deployers, and builders who integrated USDH, supporting teams through migration over the next months. These grants reflect an ongoing commitment to teams who choose to build on Hyperliquid and align with the protocol. USDH markets are fully functional but will sunset over time. USDH remains fully backed, with feeless conversions to USDC and fiat available to users during this transition.

Integating HYPE with Paxos would provide an immediate network effect into TradFi, which would further super charge growth. 95% Rev share of interest income for HYPE buybacks aligns with HYPE ethos Hyperliquid

A lot of talk about Paxos vs other providers and alignment. One thing nobody is talking about enough is what happens if you get this wrong. If you select the wrong provider and they mismanage the fiat portfolio. Or they get the compliance and legal frameworks wrong and the token has to shut down. It would be the biggest negative flywheel event for Hyperliquid. Questions about the value of the asset deposited on Hyperliquid as collateral would mean pricing there no longer matters. If you pick someone inexperienced and it blows up, the downside is so much worse. Hyperliquid

Paxos’ new proposal is excellent. This feels like the gold standard. One concern I have is about alignment. Specifically the 5% profit share in a world where rates decline or potentially go back to 0% (you never know). In a low/zero rates world, 5% of essentially nothing doesn’t maintain alignment well and so a flat fee structure removes the variability of changes in Fed rates from their revenues/profit. That feels important to maintain long term alignment and distribution efforts needed to scale the Hyperliquid ecosystem. Hyperliquid

Y’all remember when Native Markets was more ecosystem aligned and Paxos + Paypal couldn’t get it over the line Maybe Charles Schwab builder codes driven by Paxos integration would have made for a better long term vision because the name of the game in stables is DISTRIBUTION