- Hylo has announced the launch of eHYUSD, which is an upgraded version of its yield-bearing token, sHYUSD.
- The new stablecoin is a fully delta-neutral stablecoin, which means it is designed to minimize exposure to SOL price declines while still generating yield.
- 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 nothing but a rebranded version of the popular yield-bearing token of its previous version known as sHYUSD. The new version is designed to improve capital efficiency and 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, offers various new features. It is a fully delta-neutral stablecoin. This means that the protocol is designed to reduce exposure to SOL price movements while continuing to generate yield.
sHYUSD holders will not have to take any action to receive the new eHYUSD, as balances, yields, and mint addresses will remain unchanged.
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, which earns yield while remaining redeemable for the underlying assets. This design allows users to earn yield while retaining liquidity through redeemable receipt tokens.
The stablecoin rolled out with an initial minting cap 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.
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 and it is the first federal law that was created for payment stablecoins in the United States. The 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. The bill is facing significant resistance and opposition from the banking sector.
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!!!”
