Unchained Podcast: “The Competition Is On. Who’ll Win the USDH Ticker on Hyperliquid?” Episode 899 | September 9, 2025 Host: Laura Shin
Guests: Nick VanEck (CEO & Co-Founder, Agora) and Beau Cotecha (Co-Founder, Paxos Labs)

Episode Overview

This episode dives into the heated competition for the coveted USDH stablecoin ticker on Hyperliquid. Laura Shin hosts Nick VanEck (Agora) and Beau Cotecha (Paxos Labs), whose teams have put forth leading proposals. They discuss the significance of the USDH ticker, motivations and strategies behind their bids, how their approaches differ, and what ultimately matters most for building the dominant stablecoin in one of crypto’s most vibrant ecosystems.

1. Why the USDH Ticker on Hyperliquid Matters

[00:45–04:03]

• Community Alignment & Opportunity:
  • Nick (Agora): “There is a huge opportunity for an issuer or one of the proposers to really take part in offering a public good to the Hyperliquid community, which is one of the most active and engaged communities in the entire space.” [02:12]
  • Beau (Paxos): Building with community feedback in Hyperliquid is unprecedented: “We’ve gotten more feedback in the last, whatever, 48 hours … than we can possibly get on any other product cycle.” [03:05]
• For Both:
  • Even if their teams lose, both plan to launch stablecoins within Hyperliquid, recognizing its status as the “number one trading ecosystem.” [04:14–04:46]

2. Proposal Timelines and Process

[00:45–05:50]

• Laura recaps the tight deadline:
  • Proposal deadline: September 10 @ 10 UTC
  • Validators choose proposals: next day
  • Users move stakes before September 14 to vote

3. The Agora Proposal (Nick VanEck)

[05:50–10:09]

• Institutional Infrastructure from Day One:
  • State Street as custodian, VanEck managing reserves—“blue chip institutions that makes this an infinitely scalable stablecoin, but also is safe and secure.” [05:50]
• 100% Revenue Back to the Community:
  • “Something that we also have believed at Agora since day one is that digital dollars should be public goods … we proposed 100% revenue go back to the community.” [05:50]
  • Emphasis on robust, coalition-first partnerships (Rain, Layer Zero, Moonpay).
• Goal: Maximize security, transparency, and value for the Hyperliquid community, even at the cost of foregoing corporate profit.

4. The Paxos Labs Proposal (Beau Cotecha)

[10:09–14:04]

• Compliance & Regulatory Track Record:
  • “Paxos has been doing this for over a decade … we are a regulated state trust in New York where obtaining an OCC federal trust.” [10:13]
  • MICA compliant in the EU, operational in Singapore and UAE.
• Built-in Hyperliquid Alignment:
  • Acquired Molecular Labs, creators of LHype and WHLP—“primitives that power the Hyperliquid ecosystem since the very first day of Hyper EVM launch.” [12:54]
• Product DNA & Integration:
  • Deep involvement in Hyperliquid’s ecosystem from day one; unique in combining compliance with on-chain community DNA.
• Proposal Focus: 95% revenue returned to ecosystem, with 5% retained for long-term product sustainability and growth.

5. Key Differences: Revenue Models, Incentives, and Alignment

[17:34–23:54]

• Agora: 100% community rev share, forever.
  • “If we can spend our time building a public good for this ecosystem, that is time well spent.” [18:05]
  • Leverages other profitable lines of business to subsidize this as a public good.
• Paxos Labs: 95% to community; 5% retained.
  • “I believe incentives are really powerful … It really is hard to keep investing in something that has no impact to your business whatsoever.” [19:39]
  • Willing to reinvest revenue to scale, market, and integrate the asset, possibly boosting community value over time.

On Whether the Difference Is Material:

• “95% isn’t that much, right?” (Nick) [23:31]

6. Six-Month Game Plan: How Each Would Win

[24:33–30:23]

• Step 1: Match or Beat USDC’s Utility & Liquidity
  • Both stress bootstrapping liquidity, seamless on/off ramps, and user experience parity as initial imperatives.
• Paxos Labs’ Edge:
  • Global enterprise integration—access to hundreds of millions via partners like PayPal, Venmo, Robinhood, Kraken.
  • Offers “network of networks”—PyUSD, USDG interoperable at 1:1 thanks to Paxos’s infra. [27:34]
• Agora’s Strategy:
  • Coalition-building with off-ramps and wallet networks (Moonpay, Rain, Visa) from the start.
  • “Making it a first class citizen in the same way that USDC … everywhere they operate.” [28:51]
• Both highlight the need for market-maker relationships and liquidity seeding (“every stablecoin we've launched, we've seeded at least $100 million liquidity” - Beau [41:44]).

7. Handling Criticisms and Competitive Landscape

[39:23–44:56]

• On Slippage and Liquidity Critics:
  • Beau: “You can go find any pool that has terrible slippage … with that said, I understand the desire for the community to have like really tight pairs there and it’s something we invest in … with our own balance sheet and market maker relationships.” [41:44]
• On Other Proposals:
  • Both agree the main risks of choosing less-established, “homegrown” proposals are lack of scalability, infra, and neutrality.
  • Beau: “What I would encourage … is: are they neutral infrastructure providers?” [43:43]

8. Governance and Community Engagement – Notable Quotes & Moments

[00:00, 45:02–47:41]

• Nick: “This has been like the first time that governance has been fun and it feels like years … the competitiveness of the proposals is going to deliver like a really awesome outcome for the Hyperliquid community, regardless of what happens.” [00:00, 45:02]
• Beau: “I hope this reinvigorates the desire to have public debate and discussion over what's the best solution ... as a company, getting the feedback in the open is amazing.” [46:36]
• Laura: “This is a vote where people actually care. It’s not just going to be like a quiet little sleepy thing that happens over in the corner that the whales dominate ... the whales might still dominate, but…” [45:51]

9. What If They Lose?

[34:12–38:37]

• Both see themselves as committed to Hyperliquid long-term—ticker win or not.
• Nick: “If neither of us win, hey, we’ll both be involved in the Hyperliquid ecosystem anyways … both our teams are here for the long term.” [37:18]
• Beau: “We are committed to doing that regardless if we have the ticker or not … it’s a multi-year journey.” [38:37]

10. Final Takeaways & Closing Thoughts

• Both teams have deep experience and unique strengths, but agree the Hyperliquid community’s active participation is reviving the best of crypto’s open spirit.
• The episode is a rare, transparent discussion between rival teams about incentives, product plans, and the core values that should guide major ecosystem decisions.

Notable Quotes at a Glance

• Nick (Agora):
  • “Digital dollars are public goods.” [05:50]
  • “This is like the Super Bowl. A lot of eyes are going to be on this.” [18:05]
• Beau (Paxos Labs):
  • “We've been doing regulated safe stablecoin issuance for longer than anyone in the industry.” [10:30]
  • “I want to reinvest. I want to make this great. I want to make this big.” [19:39]
• Laura:
  • “This is a vote where, like, people actually care.” [45:51]

Key Timestamps & Segments

• [00:45] – Why the USDH ticker matters
• [05:50] – Agora’s proposal explained
• [10:13] – Paxos Labs’ proposal explained
• [17:34] – Revenue share and business model differences
• [24:33] – First six months: execution plans
• [39:23] – Handling liquidity criticisms
• [43:43] – Critical perspective on neutrality and ecosystem integrity
• [45:02] – Reflections on what this moment means for crypto governance

Summary Flow

• The competition for USDH is both high-stakes and symbolic, not just of product strategy but of Web3’s evolving governance.
• Both top proposals are institutionally robust and promise majority or total community reinvestment.
• Real differentiators are in approach to incentives, deep alignment with Hyperliquid values, capacity for liquidity, and vision for taking a Hyperliquid-native asset global.
• The governance excitement marks a high point for on-chain community organizing.
• Regardless of outcome, both Agora and Paxos will continue investing in growing stablecoin options on Hyperliquid—offering broader lessons in collaboration and competition.

For Listeners If you want to understand the major players in stablecoin issuance, how Web3 governance works, and what real builders think about crypto’s next phase—you’ll find this episode one of the most informative, candid, and forward-looking in the series.