Bits + Bips: Hyperliquid’s USDH Bidding War & Why the DAT Model Is Broken - Ep. 900

Unchained

Laura Shin

News, Tech News, Business News

4.6 • 1.3K Ratings

🗓️ 10 September 2025

⏱️ 66 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

The fight for Hyperliquid’s USDH stablecoin is more than a ticker battle—it’s a referendum on how crypto distribution, governance, and incentives will shape the next trillion-dollar market. In this episode of Bits + Bips, Steve Ehrlich sits down with Delta Blockchain Fund’s Kavita Gupta, Galaxy Digital’s Alex Thorn, and Frax founder Sam Kazemian to dig into the big questions: Who will win the USDH war, and why does distribution matter more than design? Are DATs fulfilling their promises—or raising money without accountability? Why are L2s the wrong place for tokenized stocks? And where exactly is the trillion-dollar opportunity in stablecoins? Sponsors: Xapo Walrus Host: Steve Ehrlich, Executive Editor at Unchained Guests: Kavita Gupta, Founder & Managing Partner of Delta Blockchain Fund Alex Thorn, Head of Firmwide Research at Galaxy Digital Sam Kazemian, Founder of Frax Finance Links: Unchained: The Competition Is On. Who’ll Win the USDH Ticker on Hyperliquid? Stablecoin Issuers Enter Bidding War to Launch Hyperliquid’s USDH Sky Joins Bidding War to Launch Hyperliquid’s USDH Timestamps: 🎬 0:00 Intro 🔥 4:17 The bidding war for Hyperliquid’s USDH 🗳️ 25:12 Whether the Hyperliquid DAO is truly decentralized ⚠️ 29:22 Are DATs already broken as a product? 🌶️ 35:00 How some DATs avoid fulfilling their promises after raising money 📈 40:27 Why yield-maximization is critical for DATs—and what risks it creates 💵 53:22 Where the trillion-dollar opportunity in stablecoins might actually be 🏛️ 55:35 Why tokenized stocks belong on L1s, not L2s Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	I think it's also the story about like the power that hyper liquid controls now, I mean, commands.
0:05.0	This is all the biggest, you know, stable coins coming to it.
0:10.0	And it's also a new sort of Dow governance bake-off as well, which is quite interesting.
0:15.0	I feel like the digital asset treasury's bubble is somewhere getting pulled.
0:20.0	It's not completely broken.
0:21.6	I think like any listed stock you want to be on the biggest market, right? It's just that like
0:26.6	we think and we're sort of in this elbowing around and debate design phase with, you know, as an industry and with the SEC about what the nature of our chain stock markets looks like.
0:36.6	And I just don't think it looks like unregulated single-sink wins, optimistic roll-ups today.
0:41.7	That's not enough for us.
0:44.6	Hi, everyone.
0:45.7	Welcome to bits and bits, exploring how crypto and macro collide one basis point at a time.
0:50.9	I'm your host, Steve Ehrlich, high scribes of the Encheon Kingdom.
0:55.7	And I'm here with three very special guests. Built by the team behind SWI, Walrus is the global data layer for Web3.
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1:33.6	First, we have Sam, Kaysmean, the Stablecoin King of Frax Finance.
1:38.3	Sam, why don't you go ahead, please introduce yourself quickly.
1:41.4	Hey, Steve, thanks so much. I'm the founder of COFRAX.
	...

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