In the fast-paced world of crypto, stablecoins are the unsung heroes keeping things steady amid the volatility. But lately, there's been a buzz around Hyperliquid's upcoming native stablecoin, USDH. Major issuers like Paxos and Agora are in a bidding war to launch it, and some proposals are offering a whopping 100% of the revenue back to the community. Sounds too good to be true? Well, Frax Finance founder Sam Kazemian broke it down in a recent episode of the Bits + Bips podcast, hosted by Laura Shin.

The Tweet That Sparked the Conversation

Laura Shin shared a clip from the podcast on X (formerly Twitter), posing the question: "Why are USDH proposals offering 100% of the revenue? @samkazemian says it’s like offering a stablecoin with zero yield… Would you take that deal if you had a monopoly on flows? 🤔" You can check out the original post here.

This teaser clip has garnered attention, with over 3,700 views and sparking discussions in the replies. Users are debating the sustainability of zero-yield models and how incentives drive adoption in DeFi.

Breaking Down the Thought Experiment

Kazemian frames this as a philosophical thought experiment. Imagine you're the sole issuer of stablecoins compatible with a major platform like Hyperliquid—a decentralized perpetuals exchange that's gaining traction in the crypto space. The catch? You can't pocket any yield from T-bills (short for Treasury bills, which are low-risk government securities often used to back stablecoins) or charge fees for minting and redeeming the stablecoin. It's essentially running it as a public good.

Would you take the deal? Kazemian says he would, emphasizing the intangible benefits. Even without direct monetization, controlling the flows—the movement of funds in and out—brings massive value. Think network effects, data insights, and strategic positioning in the ecosystem. It's not just about the immediate revenue line; it's about long-term dominance and indirect gains.

In the clip, he explains: "If no one else can issue a [Hyperliquid]-compliant stablecoin, but the flows go through me... I would take that deal." This highlights how being the gatekeeper can be worth more than short-term profits.

The Bidding War for USDH

Hyperliquid, known for its high-performance perp trading platform, is set to introduce USDH as its native dollar-pegged asset. This has attracted proposals from top stablecoin players:

• Agora's Coalition Approach: They're offering 100% revenue share to buy back HYPE, Hyperliquid's native token. Partnering with entities like Rain, LayerZero, EtherFi, MoonPay, and Centrifuge, Agora aims to create a robust infrastructure that benefits the entire community. This aligns incentives, potentially boosting HYPE's value and encouraging more usage.

• Other issuers like Paxos are also in the mix, but the 100% revenue giveaway stands out as a bold move to win the bid.

Why give away all the revenue? As Kazemian suggests, it's about securing a monopoly on flows. For issuers, being the chosen one for USDH means tapping into Hyperliquid's growing user base, which could lead to broader adoption and future opportunities.

Implications for Meme Tokens and Blockchain Practitioners

At Meme Insider, we're all about how these developments impact the meme token scene. Hyperliquid's platform is a hotspot for trading volatile assets, including meme tokens that thrive on speculation and community hype. A seamless native stablecoin like USDH could supercharge liquidity, making it easier to jump in and out of positions without bridging assets from other chains.

For meme token creators and traders, this means:

• Better Liquidity Pools: With USDH, pairing meme tokens becomes smoother, potentially reducing slippage and fees.
• Community-Driven Growth: Revenue sharing back to HYPE holders could pump the token's value, creating a positive feedback loop that attracts more degens (crypto slang for high-risk traders).
• DeFi Innovation: This model challenges traditional revenue structures, inspiring meme projects to experiment with zero-fee or community-reward mechanisms.

If you're building in blockchain, keep an eye on how DAOs (Decentralized Autonomous Organizations) handle these proposals. As the article on Unchained notes, it's not just about institutions vs. natives—it's about alignment and stewardship.

Wrapping Up

Kazemian's thought experiment flips the script on value in crypto: sometimes, control and intangibles trump direct profits. As the bidding for USDH heats up, it could set a precedent for how stablecoins integrate with platforms like Hyperliquid, ultimately benefiting the meme token ecosystem by enhancing accessibility and rewards.

For the full podcast episode, head over to Bits + Bips on YouTube. What do you think—would you take the zero-yield deal for monopoly control? Drop your thoughts in the comments!