🚨 Ethena Labs Steps Aside in Hyperliquid’s USDH Race — But Doubles Down on Innovation

Sometimes, the strongest move isn’t pushing forward — it’s knowing when to step back.

This week, Ethena Labs announced it will no longer pursue validator support for Hyperliquid’s native USDH stablecoin. The decision followed direct feedback from validators and community members, who felt Ethena’s ambitions extended beyond USDH and weren’t fully “native” to Hyperliquid.

Rather than force the issue, Ethena leaned into the spirit of decentralization:

✅ Acknowledging the feedback.

✅ Praising the process as a true “level playing field.”

✅ Congratulating Native Markets, now leading the vote.

But this isn’t the end of Ethena’s story in Hyperliquid — it’s a pivot. The team is doubling down on building synthetic dollar products, from hUSDe instruments and savings products to card-based spending solutions and prime broking designs.

The big takeaway? In ecosystems like Hyperliquid, credibility isn’t bought — it’s earned. And sometimes stepping back can create more space to build forward.

#DeFi #Stablecoins #Crypto #EthenaLabs #Hyperliquid

https://coingape.com/ethena-labs-exits-hyperliquid-usdh-bid-as-polymarket-traders-back-native-markets/?utm_source=coingape&utm_medium=linkedin