HyperStable | The Next-Generation Stablecoin on Hyperliquid

Unleashing the power of Hyperliquid, the innovative stablecoin "USH" has finally arrived! Operating on HyperEVM, HyperStable is set to unlock new possibilities in the world of DeFi (Decentralized Finance). This article thoroughly explains USH's mechanics, the secrets behind its incredible user rewards, and how you can participate in this revolution. Don't miss out on the airdrop opportunity!

What you will learn in this article:

• The innovativeness of HyperStable and its stablecoin USH
• Why USH could become the "future money" of the Hyperliquid ecosystem
• What are PEG tokens and vePEG, and how do they generate an astonishing 100% protocol revenue share?
• 42% of the total supply to the community! Detailed predictions for airdrops and referral incentives.
• How HyperStable differs from other stablecoins, its strengths, and future prospects.

HyperStable: Capturing its Allure in 5 Catchphrases!

• From Hyperliquid! Experience the DeFi revolution with the next-gen stable currency USH
• Earn with PEG tokens! New revenue opportunities created by HyperStable
• Ultra-efficient DeFi blossoms on Hyperliquid! Journey into the future with USH
• Pioneering a new horizon for decentralized stablecoins, HyperStable's challenge
• Don't miss the airdrop! HyperStable's commitment to its community

HyperStable in 1 Minute: Project Overview

HyperStable is a next-generation decentralized stablecoin protocol built on "HyperEVM," which operates on the ultra-high-performance blockchain "Hyperliquid L1." Users can mint "USH," a stablecoin pegged 1:1 to the US dollar, by collateralizing crypto assets.

Notably, by holding the protocol's utility and governance token, "PEG," in a specific form (as vePEG), holders can receive 100% of the protocol's generated revenue and participate in project decision-making. HyperStable aims to provide a highly efficient DeFi experience and a stable means of value exchange within the Hyperliquid ecosystem.

Delving Deeper! 3 Reasons Why HyperStable is Gaining Attention

1. Maximizing Hyperliquid's Power: HyperStable operates on Hyperliquid L1, which enables fast transactions and low costs, and its EVM-compatible environment, HyperEVM. This solves issues plaguing traditional DeFi, such as high gas fees and slow processing speeds, offering a seamless user experience.
2. Thorough Value Return to Users: By locking the protocol's utility and governance token PEG for an extended period (converting to vePEG), users receive 100% of protocol revenue, including USH minting fees and liquidation fees. Furthermore, various incentives are available to earn PEG tokens by contributing to the protocol, such as providing liquidity, minting USH, and referring friends.
3. Astonishing Airdrop and Community Focus: A remarkable 21% of the total PEG token supply is allocated to airdrops, and another 21% to referral incentives. This demonstrates the project's strong commitment to early users and community contributions, presenting a significant opportunity for many.

HyperStable aims to establish itself as the "reserve currency" within the Hyperliquid ecosystem. By providing access to a decentralized, transparent, and censorship-resistant USD-pegged asset, it brings new choices and opportunities to DeFi users.

Addressing the Challenges of Existing Stablecoins:

• Peg Stability: USH employs an "over-collateralized model," always backed by crypto assets exceeding its value. The minimum collateralization ratio is 110%, designed for higher capital efficiency compared to some existing projects (e.g., MakerDAO's main ETH-backed vaults are 150%-170%). This allows users to borrow more USH with less collateral.
• Centralization Risk and Transparency: It operates on the open HyperEVM, and the protocol's future is determined by decentralized governance through PEG token holders.
• Providing Revenue Opportunities: Offers diverse incentive designs for users to earn revenue, such as minting (borrowing) USH, farming PEG tokens, and protocol revenue sharing via vePEG.
• Scalability and Fee Issues: Leverages Hyperliquid L1's high-speed, low-cost infrastructure to avoid high gas fees and processing delays common on networks like Ethereum mainnet.

HyperStable presents concrete solutions to these challenges, particularly aiming to rapidly establish its position as the go-to stablecoin within the Hyperliquid ecosystem.

The HyperStable ecosystem primarily consists of three elements.

1. Stablecoin "USH": The Stable Foundation of the Hyperliquid Economy

USH is a decentralized, over-collateralized stablecoin aiming for a 1:1 peg with the US dollar.

• Issuance Method: Users can mint (borrow) USH by depositing crypto assets such as stHYPE (assumed to be a staked derivative of HYPE) as collateral. The minimum collateralization ratio is 110%.
• Use Cases: Expected to have diverse applications within the Hyperliquid ecosystem, including payment of transaction fees, collateral and trading medium in other DeFi protocols, and a means of value exchange and storage.
• Stability Maintenance: The peg is maintained by a mechanism where collateral is liquidated if its value drops below the liquidation line.
• Issuance Incentive "Minting Bonus": PEG tokens are distributed weekly based on the amount of USH minted, incentivizing USH issuance.

2. Governance Token "PEG": The Key to Protocol Revenue and Operational Participation

PEG is the utility and governance token of the HyperStable protocol. The total supply is 500 million PEG, with an IDO price of $0.04.

• Acquisition Methods:
  • Farming: Provide liquidity for USH pairs on AMMs (Automated Market Makers) like Curve and stake the LP tokens in HyperStable's farms.
  • Referral Bonus: Earn PEG based on the amount of USH minted by other users via your referral code.
• Main Roles:
  • Revenue Sharing: The right to receive 100% of protocol revenue by locking PEG as vePEG.
  • Governance Participation: vePEG holders have voting rights on important protocol matters.
  • Incentives: Distributed as Minting Bonus and Referral Bonus.

3. vePEG (Vote-Escrowed PEG): Tremendous Benefits from Long-Term Commitment

vePEG is a vote-escrowed token obtained by locking PEG tokens for a certain period. It can be described as a powerful mechanism similar to Curve Finance's "veCRV" model.

• Benefits:
  • 100% Protocol Revenue Distribution: All revenue generated by the protocol, such as USH minting fees and liquidation fees, is distributed to vePEG holders. This is a very powerful incentive.
  • Governance Voting Rights: Participate in voting on the future of the protocol, such as adding collateral types, changing fee rates, and allocating PEG emissions.
  • Protection from Dilution (Rebase): A mechanism to protect vePEG holders from the dilution of value due to new PEG issuance. Specifically, it's conceivable that a portion of newly issued PEG will be allocated to vePEG holders, or protocol revenue will be used to buy back and distribute PEG, aiming to maintain and improve the real holding value.
  • Additional Reward Boost (Gauge Voting): Vote to increase PEG emissions to specific liquidity pools, thereby boosting one's own farming rewards.

This vePEG model and gauge voting system could create "Curve War"-like dynamics within the Hyperliquid ecosystem. If other DeFi protocols actively offer "bribes (incentives)" to vePEG holders to enhance the attractiveness of their own liquidity pools, HyperStable could become a liquidity hub within the ecosystem, leading to a virtuous cycle of increased PEG token demand and protocol revenue.

4. The Power of Technology: Hyperliquid L1 and HyperEVM Supporting HyperStable

HyperStable's high performance is supported by the Hyperliquid L1 blockchain and HyperEVM on top of it.

• Hyperliquid L1: A decentralized Layer 1 blockchain specialized for financial applications like derivatives trading, achieving sub-second transaction finality and low latency.
• HyperEVM: An EVM-compatible environment integrated into Hyperliquid L1. It can directly interface with Hyperliquid's order book system "HyperCore," allowing seamless price information retrieval and order placement. This enables EVM-based DeFi apps to easily leverage Hyperliquid's deep liquidity and efficient price discovery mechanisms.

This technological foundation allows HyperStable to avoid the gas fee surges and scalability issues seen on Ethereum mainnet, offering users a fast and low-cost stablecoin experience.

USH Collateral Mechanism: Employs an over-collateralized model with a minimum collateralization ratio of 110%. Initially, assets like stHYPE will be supported as collateral. The health factor manages the soundness of collateral positions, and if it falls below a certain threshold, it is liquidated to maintain USH's peg.

Potential for Cross-Chain Functionality: The official documentation includes a "Crosschain" section, suggesting potential future expansion to other blockchains. Details are undisclosed, but if realized, it would significantly broaden USH's use cases.

The total supply of PEG tokens is fixed at 500 million. Its allocation plan demonstrates a strong emphasis on community and user acquisition.

Airdrops and referral incentives combined account for a staggering 42% of the total supply! This is evidence that the project is dedicating extremely significant resources to initial user acquisition and community building. Candy Drops readers, don't miss this chance!

The team's allocation has a 1-year vesting period, suppressing short-term selling pressure and demonstrating a long-term commitment to the project.

Rebase Mechanism: A function to protect vePEG holders from dilution due to new PEG issuance. Details are unknown, but it aims to maintain and improve real value, likely further enhancing the appeal of vePEG.

HyperStable possesses distinct strengths compared to other stablecoin projects.

1. Overwhelming Performance and Efficiency with HyperEVM: In addition to a fast, low-cost trading experience, direct integration with Hyperliquid's order book system allows for advanced financial strategies and efficient liquidation mechanisms.
2. Powerful Incentives and Community-Driven Governance via vePEG Model: The design, which promotes value return to users and autonomous growth by the community through 100% protocol revenue sharing and emission control via gauge voting, is key to a sustainable ecosystem.
3. Strong Synergy with the Hyperliquid Ecosystem: By becoming the reserve currency of the rapidly growing Hyperliquid ecosystem, demand for USH is expected to increase naturally, creating a virtuous cycle of expanding use cases throughout the ecosystem.
4. Rapid Development and Community Responsiveness: An instance where a bug report on the testnet was addressed with a patched release in just 45 minutes demonstrates the team's high development capabilities and responsiveness.

Potential Advantages in Comparison with Competitors:

• vs. MakerDAO (DAI): A minimum collateralization ratio of 110% is more capital-efficient, and it clearly differs in directly distributing 100% of protocol revenue.
• vs. Liquity (LUSD): Capital efficiency is comparable, but HyperStable offers a community-driven governance model via vePEG and more diverse yield opportunities.
• Comparison with General Decentralized Stablecoins: The low gas fees and fast transactions due to the HyperEVM foundation provide a significant advantage in user experience.

HyperStable's true strength lies in the synergistic effect of combining powerful elements: "a growing L1 ecosystem (Hyperliquid)," "a high-performance EVM-compatible environment (HyperEVM)," and "Curve-like veTokenomics." This reveals a strategy to gain first-mover advantage and establish a dominant position within the ecosystem.

HyperStable officially launched on the HyperEVM mainnet around May 2025, taking a significant step forward.

• Initial Rollout: Prioritizing stability, it started cautiously by limiting supported collateral, liquidity pools, and the total USH issuance amount. This is a prudent strategy to thoroughly manage risks and build a track record of stable operation.
• Future Development Plans:
  • Benefits are expected from HyperEVM upgrades (native transfer of ERC20 tokens, enabling precompiled contracts, etc.).
  • The "Crosschain" item in the official documentation also suggests the possibility of a multi-chain strategy.
  • The team has been posting on social media hinting at development progress, and further announcements are awaited.
• Long-Term Vision: As encapsulated by the phrase "the future money built on HyperliquidX HyperEVM," it aims to become the core of the Hyperliquid ecosystem's financial infrastructure. The goal is to grow USH into a widely used decentralized currency and build a sustainable ecosystem that returns its benefits to the community through vePEG.

While roadmap details are undisclosed, it is thought to be adopting an agile development strategy that flexibly responds to the evolution of the underlying Hyperliquid. The stance of thoroughly managing initial risks and expanding services while safely accumulating a track record is a solid approach aligned with DeFi project best practices.

HyperStable offers significant appeal and opportunities for investors, users, and developers alike. And above all, the potential for a large-scale airdrop is drawing attention!

Benefits for Investors

• Investing in PEG Tokens: In addition to value appreciation accompanying protocol growth, locking as vePEG creates a continuous cash flow source through 100% protocol revenue sharing.
• Operating USH: Minted USH can be used in other DeFi protocols to earn stable yields.

Benefits for Users (USH Minters, Liquidity Providers)

• USH Minters: Procure funds with high capital efficiency at a minimum collateralization ratio of 110%. Also receive a "Minting Bonus" in PEG.
• Liquidity Providers: Provide liquidity for USH pairs, etc., and earn farming rewards in PEG. vePEG holders can also boost rewards through gauge voting.

Benefits for Developers

• Easily integrate the stable currency USH into their own DeFi apps on HyperEVM. Build innovative financial services leveraging the high-performance infrastructure of Hyperliquid L1.

Candy Drops readers, this is the most crucial point!

• 21% of the total supply is allocated for airdrops!: This is a very large percentage compared to other projects, strongly suggesting a large-scale token distribution to early users and community contributors.
• Another 21% for referral incentives!: In total, 42% of the total supply will be allocated to user reward programs in a broad sense.

Potential Actions to Qualify for Airdrop (Speculation):

1. Testnet Participation Record: Contributors to the testnet before the mainnet launch.
2. Active Protocol Use on Mainnet:
   • Minting USH (providing collateral)
   • Providing liquidity for PEG tokens (farming)
   • Locking PEG as vePEG
3. Community Contribution: Activity on Discord, information dissemination, bug reporting, etc.
4. Existing Users of the Hyperliquid Ecosystem: DEX users, HYPE token holders, etc.

Important Notes:

• Specific airdrop criteria, the presence or date of a snapshot (rights determination date/time), have not been officially announced at this time.
• Some materials mentioning "airdrop for vePEG holders" might refer to airdrops from other projects, but the 21% allocation of the total PEG supply clearly indicates distribution by HyperStable itself.

Always check official channels for the latest information!

• HyperStable Official Website
• Official Discord Channel
• Official X (formerly Twitter) Account

This large-scale airdrop strategy is believed to be not just a reward for users but also a strategic move to attract users to the entire Hyperliquid ecosystem and to decentralize governance through the widespread initial distribution of PEG tokens.

HyperStable aims to make a significant impact on the world of DeFi by combining the strong L1 blockchain Hyperliquid and the flexible development environment HyperEVM as its foundation, with the innovative stablecoin USH and sophisticated tokenomics centered around vePEG.

In particular, the 100% protocol revenue sharing and the user rewards (including airdrops) amounting to 42% of the total supply demonstrate the project's strong commitment to its community and its desire to grow together.

Will HyperStable become the reserve currency of the Hyperliquid ecosystem and gain widespread adoption as "the future money"? And will you seize the big chance of an airdrop and become part of this exciting journey?

Keep a close eye on future developments. First, check HyperStable's official information and make sure not to miss out on this big wave!