Hyperliquid Turns USDC Yield Into Native Deflation

Hyperliquid, a decentralized exchange (DEX), has begun accruing revenue from USDC reserves through its AQAv2 protocol. The revenue sharing mechanism was announced earlier this month and became effective on August 26.

According to the Hyperliquid Daily Twitter account, around 90% of reserve revenue after operating costs will be shared with Hyperliquid. This revenue is then used to buy back HYPE, the native token of Hyperliquid's platform.

The AQAv2 protocol involves Coinbase serving as the 'Treasury Deployer' and Circle, the issuer of USDC, handling technical deployment. The revenue from the reserves will be calculated every 30 days and sent to Hyperliquid's Assistance Fund eight days later.