Hyperliquid Activates AQAv2, Doubling Down on HYPE Token Buybacks

Hyperliquid has activated AQAv2, a mechanism that redirects the yield from its massive USDC reserves into buying back and burning HYPE tokens. This new revenue channel is expected to generate between $135M and $200M in annualized revenue, with payouts scheduled for every 30-38 days. The protocol's existing buyback program has already burned over $1.27 billion worth of HYPE tokens since its launch in November 2024.

AQAv2 was approved by validators, including support from Coinbase and Circle, which each staked 500K HYPE tokens to back the activation. The introduction of AQAv2 adds a new layer of revenue for Hyperliquid's buyback program, which was previously funded primarily through trading fees.