Hyperliquid Adds Idle USDC Buyback Stream
Hyperliquid has added another engine to its buyback program by turning idle USDC into a permanent HYPE buyback stream. The new mechanism, AQAv2, was activated on August 26 and will transfer funds to Hyperliquid's Assistance Fund on October 3. This fund automatically converts trading fees into HYPE and burns the token, removing it from circulation.
The addition of idle USDC balances means that even if traders don't actively trade, their collateral can still contribute to the buyback program. This is in contrast to other tokens that rely on trading activity or exchange volume.
CoinGecko estimates that this new mechanism will add around $181.98 million per year to the Assistance Fund, representing an 18.06% increase over its previous revenue. However, this figure depends on various factors, including interest rates and USDC balances remaining steady.