Background and Total Grant Amount
On June 28, the Hyper Foundation issued a formal announcement detailing a grant program worth approximately $10 million to help developer teams affected by the gradual phase-out of the USDH stablecoin cover their migration or wind-down costs. The initiative aims to mitigate short-term disruptions caused by the asset adjustment within the protocol's ecosystem and ensure a smooth market transition.
Two Types of Grants
The grants are divided into two categories: migration grants and wind-down grants. Migration grants are available for teams that have already integrated USDH and plan to shift their related markets or deployments to USDC. Wind-down grants are for teams that choose to terminate USDH-related operations entirely rather than migrate; these grants are generally smaller than equivalent migration grants. This structure is designed to incentivize developers to choose the migration path and maintain liquidity within the ecosystem.
The specific amounts are calculated based on two key factors: First, HIP-1 and HIP-3 grants are based on actual auction deployment costs. Second, HyperEVM grants are determined by the volume of locked USDH affected. All grant recipients must commit to completing an orderly migration or wind-down by the end of July.
User Swap Options and Ecosystem Impact
For end users, the Hyper Foundation provides two direct swap methods: users can exchange USDH for USDC on the HyperCore spot order book at market rates, or use the Across Protocol on HyperEVM for a 1:1 fixed-rate conversion at no cost. This significantly reduces the cost of disposal for users and avoids additional slippage from liquidity shortages.
The Foundation also thanked all developers who built real markets on USDH, users who supported USDH growth, and Native Markets for its pioneering work on the protocol's native stablecoin. The announcement emphasized that, thanks to active cooperation from the team and community, the migration process has been smooth and orderly, with no signs of market disruption or panic.