Hyperliquid Activates Framework for USDC-Backed HYPE Token Buybacks

Hyperliquid has activated its Aligned Quote Asset v2 (AQAv2) framework to buy back and burn HYPE tokens using yield generated from USDC reserves. The protocol will allocate about 90% of the reserve yield, with the proceeds flowing to Hyperliquid's Assistance Fund every 30 days. This fund will use the funds to purchase HYPE tokens and permanently remove them from circulation.

The first payout and corresponding buyback-and-burn execution are scheduled for Oct. 3. Circle is supporting AQAv2 as its technical deployer, while Coinbase serves as treasury manager.