0xResearch HIP-3, USDH, and Felix | Charlie
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Sep 17, 2025 Dive into the evolving world of stablecoins with insights into USDH competition and liquidity challenges on Hyperliquid. Explore conservative blockchain investment strategies amid fluctuating interest rates and smart contract risks. Learn about the Felix platform’s promising developments and its potential integration with Pendle, aiming for increased total value locked. Plus, unpack the implications of HIP3 and discover how innovations in trading could reshape the DeFi ecosystem. The future is bright for Felix and its loyal users!
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Buybacks Need Scale To Move Markets
- Charlie argues USDH buybacks only matter at large scale; small buybacks are mostly narrative.
- He warns that competitors (Circle/Tether) could replicate buyback tactics, eroding USDH advantages.
Permissioning Favors Established Stables
- Charlie notes permissionless spot quote-asset rules favor established stablecoins like USDC/USDT over newcomers such as USDH.
- He suggests Hyperliquid won't easily 'king-make' a new stable without clear on-chain trust and governance alignment.
HIP3 Incentives Won’t Guarantee Monopoly
- Charlie sees incentivizing HIP3 markets as a viable growth lever for stable issuers, but expects Circle/Tether to compete.
- He stresses USDH's advantage isn't unassailable because other stables will likely pursue HIP3 incentives too.