BlockBeats News – On June 28, Hyper Foundation officially announced it will provide approximately $10 million in grants to help developers affected by the gradual phase-out of the USDH stablecoin cover migration costs. This move signals the final stage of Hyper's native stablecoin USDH as the ecosystem transitions toward a USDC-centric stablecoin framework.
Grant Program Details
The grants are divided into two categories: Migration Grants for teams that have already integrated USDH and are migrating related markets or deployments to USDC; and Shutdown Grants for teams choosing to terminate USDH-related operations without migrating. Shutdown grants are lower in amount compared to equivalent migration grants, incentivizing developers to complete the transition quickly.
Grant amounts are calculated based on different criteria: HIP-1 and HIP-3 grants are derived from auction deployment costs, while HyperEVM grants are determined by the affected USDH locked volume. All grantees must commit to completing an orderly migration or shutdown by the end of July, or risk having their grants clawed back.
Swap Channels and Migration Progress
For USDH holders, Hyper Foundation offers two fair redemption paths: users can swap USDH for USDC directly on the HyperCore spot order book, or via the Across Protocol on HyperEVM at a 1:1 ratio for free. Both methods carry no fees or slippage, ensuring a smooth asset transition.
The migration process has been orderly so far. Hyper Foundation thanked all developers who built real markets on USDH, users who supported USDH growth, and Native Markets for pioneering the protocol's native stablecoin. Thanks to proactive cooperation from teams and the community, no major panic or on-chain congestion has occurred.
Market Impact and Outlook
The phase-out of USDH may temporarily affect some liquidity pools and lending markets within the Hyper ecosystem, but the shift to USDC should enhance stablecoin fungibility and regulatory compliance. The $10 million grant size is reasonable and sufficient to cover most developers' migration costs. Going forward, Hyper Foundation may launch a new native stablecoin or adopt USDC as its primary stablecoin, simplifying its DeFi product suite.
Developers still evaluating their options are advised to apply for the appropriate grant category promptly to meet the end-of-July deadline. For USDH holders, the current 1:1 redemption window is the optimal choice to minimize losses.