Original title: What does it mean to be a Hyperliquid-aligned fiat stable?
Original author @husd_fiat
Original text compiled by: zhouzhou,
Editor's Note: HUSD is a public stablecoin project launched by Hyperliquid, which redirects stablecoin interest back into the ecosystem for repurchasing HYPE, subsidizing interface fees, and supporting the Builder Code model to promote ecological growth. It breaks the USDC/Tether model, allowing funds to flow back to the community and product development instead of centralized institutions.
The following is the original content (for ease of reading and understanding, the original content has been slightly reorganized):
What the ecosystem truly needs
The story of HUSD is about how to disrupt a stablecoin market worth billions of dollars. Hyperliquid initially emerged as a leading perpetual contract decentralized exchange (perp DEX), outperforming older players like DYDX and GMX. As the product continues to attract new users and gradually introduces a spot market, Hyperliquid is evolving into a competitor to Binance / Coinbase. Next, the ecosystem aims to challenge the dual monopoly of fiat-backed stablecoins - Circle and Tether.
Currently, approximately $2.5 billion of cross-chain USDC is locked in the order book of HyperCore, earning about 4.3% interest. This income can generate around $107.5 million annually for Circle Internet Financial, flowing into its private balance sheet. Each new deposit of USDC into Hyperliquid further expands Circle's cash flow. But what if this value is not flowing to Circle but instead used to strengthen the Hyperliquid ecosystem? Why should we still be bound by the outdated traditional stablecoin model of USDC when there is an opportunity to break through the existing framework?
Opportunity Cost of Continuing to Use Old Stablecoins
As the influence of Hyperliquid in on-chain trading continues to grow, the net deposits of fiat-backed stablecoins are also increasing, providing liquidity for the perpetual contract market and the spot market. In a future where Hyperliquid grows by 10 times, 100 times, or even 1000 times, the opportunity cost of continuing to use traditional stablecoins will also become higher. The value coming from the stablecoin layer will either continue to flow into the balance sheets of Circle and Tether or return to the Hyperliquid ecosystem itself.
A new stablecoin model tailored for Hyperliquid
The "Assistance Fund" has proven through the automatic repurchase of HYPE that the cash flow generated by the protocol can and should be directly returned to the community. In just the past 30 days, the Assistance Fund has recovered millions of dollars in HYPE from the market.
HUSD continues this strategy, but it is implemented at the stablecoin level: initially, a large portion of the interest income generated by HUSD will be used to purchase HYPE, which will then be deployed across various growth directions of the Hyperliquid ecosystem. In other words, every time you use HUSD, it will increase buying pressure for HYPE and reinvest value back into the development of Hyperliquid.
How will the repurchased HYPE be used?
HUSD: Fueling the Future of Builder Code
HUSD plays a key role in the explosion of the "Builder Code" business model. The Builder Code is a native feature of Hyperliquid that allows an interface operator to charge a fee for spot or contract trades submitted on behalf of users. Its goal is to provide a monetization method for Hyperliquid's "last mile distribution"—that is, anyone who can effectively attract and retain users can establish a trading business through the Builder Code without being constrained by technology or liquidity.
The unit economic benefits of this type of business can be quite substantial, but at this early stage, new brands still face the "cold start" problem, and the competitive moat between different interfaces is not yet apparent. The emergence of HUSD can help these "Hyperliquid hybrids" to launch, while providing a way to create differentiation among them.
By subsidizing the Builder Code costs through HUSD, the interface can charge users a higher fee without increasing their costs. The interface can generate revenue in real-time and further use these funds for growth strategies.
For example: Suppose Interface XYZ has received a rebate budget of 100 HUSD. All contract trades with its Builder Code will be counted by the system, and the corresponding user's rebate balance will continue to grow. Before the user actually starts incurring costs, the interface can handle approximately $100,000 in contract trading volume (i.e., 100 HUSD divided by a 0.1% fee rate). Meanwhile, the interface operators can reinvest the income generated by the Builder Code into customer acquisition or user retention.
This is how HUSD powers the "real-time growth" of the Hyperliquid ecosystem.
Summary
HUSD integrates two core insights: unifying the pricing assets (stablecoins) used in trading and the cash flow generated from them within the trading platform system. The end result is a stablecoin with the nature of a "public good," which transforms the originally static reserve interest into an active, compound growth within the Hyperliquid ecosystem.
HUSD is a public product project operated by Felix and supported by community members, which will be launched through the Felix Points system. This deployment is also built on the foundation laid by @m0foundation, whose vision of a "global stablecoin platform" made HUSD possible.
Hyperliquid has already disrupted the landscape of centralized exchanges, and HUSD is poised to do the same for traditional fiat-backed stablecoins.
The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
How does HUSD break the stablecoin monopoly and feed back into the Hyper ecosystem?
Editor's Note: HUSD is a public stablecoin project launched by Hyperliquid, which redirects stablecoin interest back into the ecosystem for repurchasing HYPE, subsidizing interface fees, and supporting the Builder Code model to promote ecological growth. It breaks the USDC/Tether model, allowing funds to flow back to the community and product development instead of centralized institutions.
The following is the original content (for ease of reading and understanding, the original content has been slightly reorganized):
What the ecosystem truly needs
The story of HUSD is about how to disrupt a stablecoin market worth billions of dollars. Hyperliquid initially emerged as a leading perpetual contract decentralized exchange (perp DEX), outperforming older players like DYDX and GMX. As the product continues to attract new users and gradually introduces a spot market, Hyperliquid is evolving into a competitor to Binance / Coinbase. Next, the ecosystem aims to challenge the dual monopoly of fiat-backed stablecoins - Circle and Tether.
Currently, approximately $2.5 billion of cross-chain USDC is locked in the order book of HyperCore, earning about 4.3% interest. This income can generate around $107.5 million annually for Circle Internet Financial, flowing into its private balance sheet. Each new deposit of USDC into Hyperliquid further expands Circle's cash flow. But what if this value is not flowing to Circle but instead used to strengthen the Hyperliquid ecosystem? Why should we still be bound by the outdated traditional stablecoin model of USDC when there is an opportunity to break through the existing framework?
Opportunity Cost of Continuing to Use Old Stablecoins
As the influence of Hyperliquid in on-chain trading continues to grow, the net deposits of fiat-backed stablecoins are also increasing, providing liquidity for the perpetual contract market and the spot market. In a future where Hyperliquid grows by 10 times, 100 times, or even 1000 times, the opportunity cost of continuing to use traditional stablecoins will also become higher. The value coming from the stablecoin layer will either continue to flow into the balance sheets of Circle and Tether or return to the Hyperliquid ecosystem itself.
A new stablecoin model tailored for Hyperliquid
The "Assistance Fund" has proven through the automatic repurchase of HYPE that the cash flow generated by the protocol can and should be directly returned to the community. In just the past 30 days, the Assistance Fund has recovered millions of dollars in HYPE from the market.
HUSD continues this strategy, but it is implemented at the stablecoin level: initially, a large portion of the interest income generated by HUSD will be used to purchase HYPE, which will then be deployed across various growth directions of the Hyperliquid ecosystem. In other words, every time you use HUSD, it will increase buying pressure for HYPE and reinvest value back into the development of Hyperliquid.
How will the repurchased HYPE be used?
HUSD: Fueling the Future of Builder Code
HUSD plays a key role in the explosion of the "Builder Code" business model. The Builder Code is a native feature of Hyperliquid that allows an interface operator to charge a fee for spot or contract trades submitted on behalf of users. Its goal is to provide a monetization method for Hyperliquid's "last mile distribution"—that is, anyone who can effectively attract and retain users can establish a trading business through the Builder Code without being constrained by technology or liquidity.
The unit economic benefits of this type of business can be quite substantial, but at this early stage, new brands still face the "cold start" problem, and the competitive moat between different interfaces is not yet apparent. The emergence of HUSD can help these "Hyperliquid hybrids" to launch, while providing a way to create differentiation among them.
By subsidizing the Builder Code costs through HUSD, the interface can charge users a higher fee without increasing their costs. The interface can generate revenue in real-time and further use these funds for growth strategies.
For example: Suppose Interface XYZ has received a rebate budget of 100 HUSD. All contract trades with its Builder Code will be counted by the system, and the corresponding user's rebate balance will continue to grow. Before the user actually starts incurring costs, the interface can handle approximately $100,000 in contract trading volume (i.e., 100 HUSD divided by a 0.1% fee rate). Meanwhile, the interface operators can reinvest the income generated by the Builder Code into customer acquisition or user retention.
This is how HUSD powers the "real-time growth" of the Hyperliquid ecosystem.
Summary
HUSD integrates two core insights: unifying the pricing assets (stablecoins) used in trading and the cash flow generated from them within the trading platform system. The end result is a stablecoin with the nature of a "public good," which transforms the originally static reserve interest into an active, compound growth within the Hyperliquid ecosystem.
HUSD is a public product project operated by Felix and supported by community members, which will be launched through the Felix Points system. This deployment is also built on the foundation laid by @m0foundation, whose vision of a "global stablecoin platform" made HUSD possible.
Hyperliquid has already disrupted the landscape of centralized exchanges, and HUSD is poised to do the same for traditional fiat-backed stablecoins.
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