Unchained Bits + Bips: Hyperliquid’s USDH Bidding War & Why the DAT Model Is Broken - Ep. 900
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Sep 10, 2025 
Join Sam Kazemian, CEO of Frax Finance; Kavita Gupta, Founder of Delta Blockchain Fund; and Alex Thorn, Head of Research at Galaxy Digital, as they dive into the intense competition for Hyperliquid's USDH stablecoin. They discuss why distribution trumps design in this bidding war, the accountability issues plaguing DATs, and the obstacles faced by tokenized stocks on L2s. The conversation reveals the trillion-dollar potential lurking in stablecoins and the significant implications for the future of decentralized finance.
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Distribution Trumps Yield
- Hyperliquid's USDH competition is mainly a battle for distribution and flow stewardship, not just yield.
- Winning gives privileged access to one of crypto's largest on-chain distribution networks and long-term value beyond mint fees.
Ticker Is Namespace, Not Innovation
- The USDH auction is effectively selling namespace and privileged distribution, not core design innovation.
- Stablecoin adoption often boils down to which issuer controls downstream flows and integrations.
Compete On Distribution And Stewardship
- Offer clear value beyond yield to win chain-branded stablecoin slots, such as stewardship of flows and trusted infrastructure partnerships.
- Prioritize integrations and distribution relationships over tiny yield differentials.