USDhl: A Purpose-Built Stablecoin for the Hyperliquid Ecosystem, Powered by M0
- Could you explain what USDhl is for those who might not know? What are its core mission and values?
USDhl is a cash-backed/fiat-backed stablecoin on Hyperliquid. The purpose of USDhl is to serve as a superior dollar product for DeFi users both on HyperCore (spot order book + perps order book) and HyperEVM compared to legacy stables like USDC and USDT.
The core mission is to ultimately bring more savings and value back to the end user. We believe that our rewards design is superior to legacy models - same risk profile, more rewards.
- What inspired Felix to build USDhl and enter the stablecoin space? What was the opportunity here?
Everything in finance is about risk-reward profiles and we felt that we could offer superior risk-reward opportunities with a fiat stablecoin by using the treasuries revenue as an additional reward for users. There was a lot being left on the table for end users, and no one had executed on this. We knew Hyperliquid would be the perfect ecosystem as well due to how fast it was growing and how much it needed stablecoin liquidity on HyperEVM. Furthermore, as HyperCore grows, we felt that our rewards model with USDhl meant more cost savings for traders, for both advanced and newbie.
- What were the main issues you faced when considering building a stablecoin?
It’s quite a lot of effort, from both a regulatory and an infrastructure standpoint to launch a fiat-backed / cash-backed stablecoin. You have to manage off-chain treasuries, which is quite a logistical effort, and it was not something that we wanted the headache to deal with. We decided to use M0, as their infrastructure allows us to focus on distribution and customization of the rewards, rather than building out the basics.
- What benefits has Felix experienced by working with M0?
M0 has saved us significant time and money. Their infrastructure has significantly reduced the time and cost of development required to roll out USDhl. This means we can go to market much quicker and spend more of our energies and resources on distribution.
Additionally, the team has been very helpful as a working partner, offering help as we think about go-to-market, distribution, and general feedback.
- What prompted your decision to partner with M0?
It was the only solution that fit what we needed. We were looking for a reliable partner that we could trust and had a mature enough infrastructure for us to build USDhl on. There were no other options that matched what we felt M0 provided.
- What are the plans for USDhl in terms of use cases and applications?
Today, the main things that users can do with USDhl are earn superior DeFi yields by lending out USDhl or AMM LPing USDhl. This is because the treasuries revenue is used to reward users for their DeFi activities.
As Hyperliquid matures, USDhl will be used as a collateral asset on the Hyperliquid perp markets as well as a quote asset for trade settlement on the Hyperliquid spot markets.
About USDHL
USDhl is a fiat-backed stablecoin built by the Felix Labs team. It is custom-built for Hyperliquid’s trading environment, used as a building block for borrowing / lending and trade settlement. Furthermore, revenues generated via the treasuries collateral is reinvested back into the ecosystem to drive growth.
About M0
M0 is the universal platform powering builders of application-specific stablecoins. With M0, developers can build safe, programmable and interoperable digital dollars.