10.09.2025 20:42
Paxos has unveiled an ambitious second iteration of its USDH stablecoin proposal, specifically designed for the Hyperliquid ecosystem, featuring a landmark collaboration with PayPal. This comprehensive update, which incorporates crucial community feedback from earlier discussions, introduces significant strategic enhancements intended to dramatically accelerate the stablecoin's global adoption. A cornerstone of this initiative is a substantial $20 million incentive program, alongside a meticulously revised compensation model for Paxos, all geared towards positioning USDH as a pivotal gateway stablecoin for broader decentralized finance (DeFi) integration.
Central to USDH Proposal V2 stands a groundbreaking partnership with PayPal, encompassing the anticipated listing of HYPE tokens across both PayPal and Venmo platforms, pending necessary regulatory clearances. This alliance transcends merely adding assets; it further promises complimentary on/off-ramp services for USDH, thereby simplifying user access. Notably, PayPal has pledged a substantial $20 million towards ecosystem incentives, underscoring its commitment to the success and expansion of this digital asset.
The depth of PayPal's involvement is evident in its commitment to integrating USDH across its extensive payment infrastructure. This robust support extends to key services such as Checkout, Braintree, Venmo, Hyperwallet, and Xoom, ensuring widespread accessibility. By leveraging PayPal's established "Pay With Crypto" solution, the partnership is set to expose USDH and HYPE tokens to an colossal processing volume, which currently surpasses an impressive $1 trillion annually, significantly amplifying their market presence.
Each integrated platform plays a strategic role: Venmo, as a dominant social payment network in the United States, will facilitate seamless peer-to-peer transfers and merchant transactions for USDH users. Concurrently, Hyperwallet's inclusion is poised to offer efficient global payout solutions, benefiting contractors and freelancers worldwide. Furthermore, the integration with Xoom will unlock access to vital remittance services, connecting users in over 100 countries with enhanced digital payment capabilities.
Addressing prior community feedback regarding equitable value distribution and incentive synchronization, the revised reward structure for Paxos introduces clear, milestone-driven compensation. Notably, Paxos will forgo all compensation until USDH achieves a significant $1 billion in total value locked (TVL). Beyond a $5 billion TVL threshold, their earnings will be strictly capped at 5%. Crucially, any fees accrued by Paxos through these milestone accomplishments will be paid entirely in HYPE tokens, meticulously aligning the company’s financial interests with the long-term prosperity of the community and ecosystem.
This strategic evolution underscores USDH's potential to become a foundational stablecoin within the Hyperliquid and broader DeFi landscape. Paxos’s Initial Phases Prioritize Ecosystem…
