Dragonfly Partner: USDH Bidding Like a Farce, Perhaps Tailor-Made for Native Markets, Community and Validators Diverge

According to Odaily Planet Daily, Dragonfly Managing Partner Haseeb posted on the X platform, "It's starting to feel like the USDH RFP is a bit of a farce. I've heard from multiple bidders that no validator is interested in considering other issuers besides Native Markets. This isn't even a serious discussion; it's like a backroom deal has already been reached."

Native Markets' proposal appeared almost immediately after the USDH RFP was announced, suggesting they were notified in advance. Others scrambled to put things together all weekend. So the entire USDH RFP was essentially tailor-made for Native Markets. Meanwhile, the community seemed to agree that the best proposals came from established players like Ethena, Paxos, and Agora, not a brand-new startup like Native Markets. Polymarket told the same story—as soon as the Ethena proposal was announced, the odds immediately soared, making it the most likely option to win, until people realized validators weren't interested. Within two hours, the odds plummeted.

He later added in the comments section: “Now heard from more than half of the USDH bidders, they agree with this and said they won’t say it publicly because they think it’s pointless and will only be criticized.” In addition, another bidder said to him: “For obvious reasons, I don’t want to say this publicly, but count me in the category of people who said, ‘I’m sure this is for Native Markets and they want to do a procedural governance vote, but underestimated the crazy fierce competition it would face.’”