Hyperliquid secures $14.58 million for HYPE buybacks via USDC reserve funding
Hyperliquid has begun leveraging a new revenue source to fund HYPE token buybacks after receiving its first USDC reserve funding payment under the AQAv2 framework. The initial payment amounted to $14.58 million, covering a 30-day period. This marks a shift from relying solely on trading fees, as the AQAv2 framework directs about 90% of the cost-adjusted yield from USDC reserve supply back to the protocol.
The funds are routed through the Assistance Fund, which is responsible for purchasing HYPE tokens on the open market. This payment represents the first time Hyperliquid has used USDC reserve funding specifically for HYPE buybacks. According to a post by WuBlockchain, the AQAv2 protocol, activated in August 2026, is designed to channel eligible USDC reserve yield into recurring buybacks.
The arrangement provides Hyperliquid with a separate funding stream tied to its USDC reserves, enhancing the protocol's financial stability beyond trading fee income. This development underscores the growing importance of diversified revenue streams in the cryptocurrency ecosystem.