Post #434

Proposal for permissionless aligned stablecoins [pending feedback, forwarded from governance forum] The Hyperliquid protocol will support “aligned stablecoins” as a permissionless primitive for stablecoin issuers to leverage Hyperliquid’s unique distribution and scale together with the protocol. Aligned stablecoins offer lower trading fees, better market maker rebates, and higher volume contribution toward fee tiers when used as the quote asset for a spot pair or the collateral asset for HIP-3 perps. Hyperliquid will continue to support a wide variety of permissionless quote assets for spot and perps trading. There will be continual technical developments to ensure that the Hyperliquid L1 is the most performant infrastructure for general purpose asset issuance, liquidity, and building. To be clear, the motivation behind alignment is not to exclude any issuers, but rather to introduce an opt-in setting for new stablecoin teams to bootstrap their network effects and share upside proportionally with the protocol. Aligned stables and other assets serve different purposes and audiences, and will coexist and complement each other. In an ideal outcome, the next generation of payments and personal finance technologies are built on Hyperliquid. Similar to the builder-protocol synergy of permissionless spot listings, HIP-3, and builder codes, aligned stablecoins are part of the infrastructure to move all of finance onchain. Aligned stable benefits, applied to spot and perp trading: 1. 20% lower taker fees 2. 50% better maker rebates 3. 20% more volume contribution toward fee tiers Onchain requirements: 1. Enabled as a permissionless quote token 2. 800k additional staked HYPE by deployer, meaning a total of 1M staked HYPE including the 200k staked HYPE for the quote token deployment. This is to give builders and users assurance to use the aligned stablecoin. 3. 50% of the offchain yield shared with the protocol. Validators vote on the precise definition of this yield as stablecoin regulation develops. The intention is to reflect the yield earned by the issuer’s offchain assets. There will be follow-up work on the exact definition of risk-free rate, which will be updated according to an onchain stake-weighted median of validator reported values. A CoreWriter action will allow the deployer to reflect the exact minted balance from HyperEVM directly to HyperCore, which will allow a fully automated fee share mechanism as part of L1 execution. Offchain requirements, enforced through onchain quorum of validator votes: 1. Fiat USD-backed stablecoin 2. Full supply natively minted on HyperEVM. Any supply on other chains or offchain must first be minted on HyperEVM as the source chain. 3. The issuer exclusively issues this one asset. The issuer may work on other products, but they must synergize with the aligned stablecoin. Examples include neobanks and payments denominated in the stablecoin. 4. The issuer cannot benefit from any other form of yield income or asset issuance. For example, this excludes issuers of other stablecoins. It also excludes indirect arrangements where the issuer receives external income in exchange for conversion of the aligned stablecoin into another asset. 5. The team building an aligned stablecoin must be independent and dedicated to building on Hyperliquid. Offchain requirements will inevitably involve judgment, and the validator quorum is empowered to interpret them in line with the intent. The 1M staked HYPE can be slashed in accordance with the rules above. Any feedback is appreciated. Note that the conditions above have not been finalized and community suggestions are welcome.