Become a fiat stablecoin aligned with Hyperliquid.
**Written by @**husd_fiat
Compiled by: zhouzhou, BlockBeats
Editor's Note: HUSD is a public stablecoin project launched by Hyperliquid, which channels stablecoin interest back into the ecosystem for the repurchase of HYPE, subsidizing interface fees, and supporting the Builder Code model to drive ecosystem growth. It breaks the USDC/Tether model, ensuring that funds no longer flow to centralized institutions but instead nourish community and product development.
The following is the original content (reorganized for easier reading and understanding):
What the ecosystem truly needs
The story of HUSD is about how to disrupt a stablecoin market worth tens of 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 continued to attract new users and gradually introduced a spot market, Hyperliquid gradually evolved into a competitor to Binance / Coinbase. Next, the ecosystem aims to challenge the dual monopoly of fiat stablecoins — Circle and Tether.
Currently, approximately $2.5 billion of cross-chain USDC is locked in HyperCore's order book, yielding about 4.3% interest. These earnings can generate about $107.5 million in revenue for Circle Internet Financial annually, flowing into its private balance sheet. Every new deposit of USDC into Hyperliquid further expands Circle's cash flow. But what if this value does not flow to Circle, but instead is used to grow the Hyperliquid ecosystem? When there is an opportunity to break through the existing framework, why should we still be bound by the outdated traditional stablecoin model like USDC?
Opportunity Cost of Continuing with Old Stablecoins
As Hyperliquid's influence in on-chain trading continues to grow, the net deposits of fiat stablecoins have also increased, providing liquidity for the perpetual contract market and the spot market. In a future where Hyperliquid grows 10 times, 100 times, or even 1000 times, the opportunity cost of continuing to use traditional stablecoins will also become higher and higher. This value coming from the stablecoin layer will either continue to flow into the balance sheets of Circle and Tether or flow back into the Hyperliquid ecosystem itself.
A New Stablecoin Model Tailored for Hyperliquid
The "Assistance Fund" has demonstrated 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 unfolds at the stablecoin level: initially, a large portion of the interest income generated by HUSD will be used to purchase HYPE, and then these HYPE will be deployed in various growth directions of the Hyperliquid ecosystem. In other words, every time you use HUSD, it will add buying pressure to HYPE and reinvest value back into the development of Hyperliquid.
How will the repurchased HYPE be used?
HUSD: Fuel for the Future of Builder Code
HUSD plays a key role in driving the explosion of the "Builder Code" business model. The Builder Code is a native feature of Hyperliquid that allows an interface operator to collect certain fees 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 restricted 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 moat between different interfaces is not yet obvious. The emergence of HUSD can help these "Hyperliquid hybrids" to complete their launch, while providing a way for them to differentiate from each other.
By subsidizing Builder Code costs through HUSD, the interface can charge users higher fees without increasing their costs. The interface can generate income 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 transactions 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, this interface can handle a contract transaction volume of approximately $100,000 (i.e., 100 HUSD divided by a 0.1% fee rate). Meanwhile, the interface operator can also reinvest the income generated by the Builder Code into attracting new users or retaining existing ones.
This is how HUSD powers the "real-time growth" of the Hyperliquid ecosystem.
Summary
HUSD combines two core insights: integrating the valuation asset (stablecoin) used for trading and the cash flow it generates into a unified trading platform system. The end result is a stablecoin of a "public good" nature, which transforms the originally static reserve interest into 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, and it is their vision of a "global stablecoin platform" that has made HUSD possible.
Hyperliquid has already disrupted the landscape of centralized exchanges, and HUSD is ready to do the same for traditional fiat 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?
**Written by @**husd_fiat
Compiled by: zhouzhou, BlockBeats
Editor's Note: HUSD is a public stablecoin project launched by Hyperliquid, which channels stablecoin interest back into the ecosystem for the repurchase of HYPE, subsidizing interface fees, and supporting the Builder Code model to drive ecosystem growth. It breaks the USDC/Tether model, ensuring that funds no longer flow to centralized institutions but instead nourish community and product development.
The following is the original content (reorganized for easier reading and understanding):
What the ecosystem truly needs
The story of HUSD is about how to disrupt a stablecoin market worth tens of 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 continued to attract new users and gradually introduced a spot market, Hyperliquid gradually evolved into a competitor to Binance / Coinbase. Next, the ecosystem aims to challenge the dual monopoly of fiat stablecoins — Circle and Tether.
Currently, approximately $2.5 billion of cross-chain USDC is locked in HyperCore's order book, yielding about 4.3% interest. These earnings can generate about $107.5 million in revenue for Circle Internet Financial annually, flowing into its private balance sheet. Every new deposit of USDC into Hyperliquid further expands Circle's cash flow. But what if this value does not flow to Circle, but instead is used to grow the Hyperliquid ecosystem? When there is an opportunity to break through the existing framework, why should we still be bound by the outdated traditional stablecoin model like USDC?
Opportunity Cost of Continuing with Old Stablecoins
As Hyperliquid's influence in on-chain trading continues to grow, the net deposits of fiat stablecoins have also increased, providing liquidity for the perpetual contract market and the spot market. In a future where Hyperliquid grows 10 times, 100 times, or even 1000 times, the opportunity cost of continuing to use traditional stablecoins will also become higher and higher. This value coming from the stablecoin layer will either continue to flow into the balance sheets of Circle and Tether or flow back into the Hyperliquid ecosystem itself.
A New Stablecoin Model Tailored for Hyperliquid
The "Assistance Fund" has demonstrated 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 unfolds at the stablecoin level: initially, a large portion of the interest income generated by HUSD will be used to purchase HYPE, and then these HYPE will be deployed in various growth directions of the Hyperliquid ecosystem. In other words, every time you use HUSD, it will add buying pressure to HYPE and reinvest value back into the development of Hyperliquid.
How will the repurchased HYPE be used?
HUSD: Fuel for the Future of Builder Code
HUSD plays a key role in driving the explosion of the "Builder Code" business model. The Builder Code is a native feature of Hyperliquid that allows an interface operator to collect certain fees 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 restricted 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 moat between different interfaces is not yet obvious. The emergence of HUSD can help these "Hyperliquid hybrids" to complete their launch, while providing a way for them to differentiate from each other.
By subsidizing Builder Code costs through HUSD, the interface can charge users higher fees without increasing their costs. The interface can generate income 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 transactions 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, this interface can handle a contract transaction volume of approximately $100,000 (i.e., 100 HUSD divided by a 0.1% fee rate). Meanwhile, the interface operator can also reinvest the income generated by the Builder Code into attracting new users or retaining existing ones.
This is how HUSD powers the "real-time growth" of the Hyperliquid ecosystem.
Summary
HUSD combines two core insights: integrating the valuation asset (stablecoin) used for trading and the cash flow it generates into a unified trading platform system. The end result is a stablecoin of a "public good" nature, which transforms the originally static reserve interest into 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, and it is their vision of a "global stablecoin platform" that has made HUSD possible.
Hyperliquid has already disrupted the landscape of centralized exchanges, and HUSD is ready to do the same for traditional fiat stablecoins.