There you go, Maker ppl flexing how good it is for fractional reserve and how much USDC they have as a despair attempt to win USDH bid. Couldn't stray further away from DecentralizedGod
It reminds me of the when all the teams were flexing how American based they are few months ago
Watch these moments carefully there is a lot to learn. It's common to see projects taking the gloves off trying to chase a hype wave
All respect to the USDH competitors, but there are two likely winners depending on whether Hyperliquid is looking for a full or fractional reserve stablecoin.
Full-reserve winner: Paxos
Fractional-reserve winner: Sky
Full reserve stablecoins all share the same problem in that onchain peg liquidity is a significant issue. They need to pay very expensive incentives to third parties to maintain this liquidity with other larger stablecoins such as USDC.
Fractional reserve stablecoins are superior in this regard because they can market make their own peg and use the balance sheet to generate higher returns from things such as defi money markets.
Sky is the largest onchain holder of USDC apart from Hyperliquid itself, so this is a natural choice if they choose to go the fractional-reserve route.
No matter the outcome, it's going to be a fun week.
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