#稳定币市场竞争 Reflecting on this competition for the issuance rights of USDH, it reminds me of the global financial regulatory shock triggered by the Libra project in 2019. At that time, governments and Central Banks around the world expressed their concerns that Libra would challenge the sovereignty of national currencies. Now, the competition in the stablecoin market has evolved from being dominated by a single entity to a fierce competition among trading platforms and ecosystems.

Institutions such as Paxos, Frax, and Agora are competing to propose, focusing on high percentage rebates and compliance. This indicates that stablecoin issuers have to compromise with both users and regulators to gain a larger market share. Particularly, the promise of 95%-100% return on investment is something that was unimaginable in the past.

In the long run, this competitive landscape has both advantages and disadvantages. The benefit is the acceleration of stablecoin innovation, which clearly benefits users; the risk lies in the possibility that excessive competition may lead to lax risk control. The regulatory aspect will also face new challenges in balancing innovation and risk.

For Hyperliquid, this is a good opportunity to break free from reliance on centralized stablecoins. However, one must also be wary of the new risks that come from excessive dependence on a single issuer. It is recommended to adopt a diversified strategy to ensure liquidity while spreading risk.

Overall, this marks the arrival of the stablecoin 2.0 era. In the future, more trading platforms will emulate this model, and the competitive landscape of stablecoins will become more diversified and localized. We must closely monitor the profound impact of this trend on the entire crypto ecosystem.