Hyper Foundation is putting roughly $10 million on the table to help builders and operators through the USDH wind-down as Hyperliquid shifts its trading activity toward USDC.
What’s happening
- The foundation announced a grant program — about $10M in total — to cover migration and orderly shutdown costs for projects affected by the USDH sunset. The goal is to smooth technical and liquidity transitions as the ecosystem consolidates around USDC.
Who can apply
- Eligible recipients include HIP-1 (spot market) and HIP-3 (perpetual market) deployers, HyperEVM protocols, USDH bridge operators and Native Markets. HIP-1 and HIP-3 deployers may need help because USDH was used as a quote asset or liquidity route for various products; HyperEVM and bridge teams face direct technical changes.
Deadlines and user conversions
- Grants come with firm timing: recipients must complete migrations or orderly shutdowns by the end of July. Builders have a short window to update markets, move liquidity, adjust bridges or close USDH-related services.
- For users, the official USDH migration dashboard supports USDH-to-USDC and USDH-to-fiat conversions until July 17, and the USDH/USDC spot order book will remain available during the transition. Native Markets says USDH remains fully backed and that feeless conversions into USDC and fiat are available for onboarded customers.
Why this is happening
- The grant program follows Hyperliquid’s broader shift to USDC. Coinbase became the official USDC treasury deployer on Hyperliquid in May, strengthening USDC as the aligned quote asset and gaining the right to purchase USDH brand assets from Native Markets.
- USDH was originally launched to reduce dependence on external stablecoin issuers and keep more reserve yield inside Hyperliquid; Native Markets won the validator vote to issue USDH in September 2025. But maintaining two native stablecoin systems can split liquidity and add friction for traders. Moving back toward USDC aims to simplify markets and improve liquidity depth and user experience.
Practical impact
- The grants are focused on cleanup rather than expansion: teams may need to change collateral parameters, update front ends, migrate markets, move liquidity, close positions, or support users during withdrawals. For Hyperliquid, funding these efforts reduces the risk of unfinished integrations and stranded liquidity while giving builders a financial incentive to finish the transition on time.
Bottom line
- The $10M grant program signals a pragmatic pivot: Hyperliquid is prioritizing market efficiency and user experience over maintaining a dual stablecoin setup. A tight timeline means affected teams and users should act quickly to complete migrations or conversions.
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