Hyperliquid's AQAv2 Protocol Goes Live, Boosting HYPE Price

Hyperliquid's AQAv2 protocol has gone live, allocating 90% of USDC reserve yields toward HYPE token buybacks and burns. The new system, deployed by Circle with Coinbase managing treasury operations, will see initial payouts expected on October 3.

The projected annual buyback volume ranges from $135 million to $200 million, with around $20 million designated for the inaugural round. This marks Hyperliquid's second buyback pathway, in addition to its original mechanism that allocates 99% of trading fee revenues toward HYPE repurchases and burns.

HYPE surged over 2% post-launch, hovering at $83.08, just 0.2% shy of its all-time peak of $83.27. Wintermute scaled back its short position from $211.53 million to $80.48 million, per data from Onchain Lens.

The protocol operates on 30-day intervals, with distributions moving to the Assistance Fund eight days following each period's conclusion. The new mechanism reacts to distinct market drivers, ensuring buyback pressure can materialize from multiple sources simultaneously.