CDP "stablecoins" on HyperEVM, such as feUSD and USDXL, are unable to maintain their $1 peg due to the lack of a robust arbitrage mechanism, weak demand in Hyperliquid, and low borrowing costs. As a result, their prices have fallen below $1. Hyperliquid natively offers leveraged trading, eliminating the need for CDP stablecoins. With the depletion of airdrops and points rewards, CDP tokens will lose value and ultimately fail to sustain themselves. In Short: CDP stablecoins, such as feUSD and ...

CDP "stablecoins" on HyperEVM, such as feUSD and USDXL, are unable to maintain their $1 peg due to the lack of a robust arbitrage mechanism, weak demand in Hyperliquid, and low borrowing costs. As a result, their prices have fallen below $1. Hyperliquid natively offers leveraged trading, eliminating the need for CDP stablecoins. With the depletion of airdrops and points rewards, CDP tokens will lose value and ultimately fail to sustain themselves. In Short: CDP stablecoins, such as feUSD and ...