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Hylo has announced the launch of eHYUSD, which is an upgraded version of its yield-bearing token, sHYUSD.
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The new stablecoin is a fully delta-neutral stablecoin without having any kind of exposure to SOL price drops while providing an impressive yield.
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Existing users with sHYUSD will automatically receive eHYUSD.
On July 13, Hylo, a Solana-based decentralized finance (DeFi) protocol, announced the launch of eHYUSD, which is a rebranded version of the popular yield-bearing token of its previous version known as sHYUSD. The new version is created to provide a new performance and improved risk management for users looking for stable yields in the rapidly growing stablecoin sector.
What is eHYUSD?
According to Hylo’s official announcement, eHYUSD is the new name and improved version of sHYUSD. It is a yield-bearing receipt token that users receive when they stake hyUSD, Hylo’s USD-pegged stablecoin, in the protocol’s savings and earn module.
Hylo’s stablecoin, eHYUSD, is known for its various features. It is a fully delta-neutral stablecoin. It means that the stablecoin cuts its exposure to Solana tokens during the bearish momentum. This will provide more stability to eHYUSD.
sHYUSD holders will not require any action to receive new eHYUSD as balances, yields, and mint addresses will stay the same.
Apart from this, users will be able to earn an attractive yield on the new version of the stablecoin. It earns yield from the liquid staking tokens (LSTs) backing the protocol and rewards from the stability pool. The current APY for eHYUSD is around 9.67%, according to the official website.
The new stablecoin is backed by hyUSD, which is a decentralized stablecoin pegged to USD at a 1:1 ratio. It is backed by a collateral pool of Solana liquid staking tokens and supported by a dual-token system with xSOL to maintain stability. xSOL is a leveraged SOL exposure token.
Users stake hyUSD to receive liquid eHYUSD in order to earn yield while remaining redeemable for the underlying assets. This stablecoin makes it a perfect match for users who want to earn passive income on stable holdings without giving up on liquidity.
The stablecoin rolled out with an initial minting capitalization of around $15 million. There will also be a boost event, where users can boost up to 25% on Season 1 XP.
Users with sHYUSD are not required to take any action, as there will be a smooth transition process for tokens. Their holdings will be updated to the new token automatically, with the same balances and the same yield mechanics.
The upgrade will improve the underlying system by making it fully delta-neutral, while keeping everything the same.
Hylo Rolls Out New Stablecoin Version Amid Major Regulatory Developments
The launch of new eHYUSD comes amid the growing regulatory clarity around the digital asset market, which has boosted the overall market capitalization of the stablecoin market.
The GENIUS Act (also known as the Guiding and Establishing National Innovation for U.S. Stablecoins Act) was signed into law in 2025. It has created the first federal law for payment stablecoins in the U.S. GENIUS Act requires stablecoins to be backed by liquid assets like USD or short-term treasuries in a 1:1 ratio with monthly disclosures. It also implements strong anti-money laundering and sanctions compliance.
Apart from this, the progress in another regulatory framework, the CLARITY Act, has boosted the confidence of companies and financial institutions to adopt stablecoins. However, the regulatory framework is still facing resistance from the banking sector and opposition.
In the latest post on Truth Social, U.S. President Donald Trump urged Congress to approve the CLARITY Act. He said, “In honor of Senator Lindsey Graham, a big supporter, the U.S. Senate should pass the Clarity Act. China, and many other countries, would like to take complete and total control of this major financial “happening,” as well as A.I., where we are now leading, but where they are fighting hard. Don’t let China win on either subject!!!”
