Hyperliquid Activates AQAv2 Framework, Directing USDC Yield into HYPE Token Buybacks

Hyperliquid has activated its AQAv2 framework, which directs about 90% of yield from its $5 billion USDC reserves to buy back and burn HYPE tokens. This new revenue stream supplements trading fees and is expected to generate $135 million annually.

The framework was approved by 69.08% of validators in a recent vote. Circle manages the technical deployment of USDC, while Coinbase oversees treasury reserves.

Reserve income accrues over 30-day cycles before transferring to Hyperliquid's Assistance Fund, which funds the buybacks. The first payout is scheduled for October 3.