Hyperliquid's AQAv2 Activation Redirects USDC Yield to HYPE Token Buybacks

Hyperliquid has introduced a new mechanism that redirects some of the yield generated by its USDC reserves to its Assistance Fund, which uses this income to buy HYPE tokens on the open market. This transformation was made possible through the AQAv2 activation for USDC, which went live on August 26.

According to the framework, stablecoin deployers will share approximately 90% of cost-adjusted reserve yield revenue directly with the Hyperliquid protocol. The remaining 10% will be split between a treasury address and a linked HyperEVM smart contract. This new setup aims to balance yield capture and operational stability.

The AQAv2 framework is expected to generate significant revenue, with market estimates suggesting a range of $135 million to $160 million annually. However, it's essential to note that these figures are not confirmed by Hyperliquid itself.