Hyperliquid Activates AQAv2 Framework for USDC-Funded HYPE Buybacks

Hyperliquid has activated its Aligned Quote Asset v2 (AQAv2) framework to direct USDC reserve yield towards HYPE buybacks. The system allocates 90% of USDC balance yields to the Assistance Fund, providing a second funding route for purchasing HYPE tokens. Yield accrual began on August 26 and will be calculated in 30-day cycles, with proceeds reaching the fund eight days after each cycle ends.

The first payment is scheduled for October 3, and market estimations indicate an annual inflow of $135 million to $200 million. This revenue will be used for HYPE buybacks, with the first allocation allowing purchases up to $20 million worth of tokens. The combined funding routes from trading fees and reserve income could increase if both platform usage and USDC balances grow.

Hyperliquid's existing fee stream directs nearly 99% of trading-fee revenue to the Assistance Fund for open-market HYPE purchases. AQAv2 adds a new revenue source linked to stablecoin deposits instead of trading volume, providing a more consistent funding mechanism.