Hyperliquid Activates AQAv2 to Fuel HYPE Buybacks with USDC Reserve Yield

Hyperliquid has activated its AQAv2 framework to fund HYPE buybacks using USDC reserve yield. The protocol confirmed on August 26 that reserve income from USDC will now be directed toward market purchases and permanent token burns. Circle serves as the technical deployer, while Coinbase manages the treasury reserves for USDC.

The HYPE buyback mechanism is part of the Aligned Quote Asset v2 system, which channels a share of reserve revenue earned from stablecoins supplied to Hyperliquid back into the protocol itself. Approximately 90% of reserve yield moves to the Assistance Fund every 30 days to carry out the buybacks.

The first AQAv2 payout is scheduled for October 3, following the August 26 accrual start. The funds that reach the Assistance Fund will be used to buy HYPE directly from the market and then burned, removing them from the circulating supply. As USDC supplied to Hyperliquid increases, the yield generated from those reserves also tends to grow, translating into a larger pool of funds available for future HYPE purchases.