Hyperliquid Launches USDC Yield Mechanism for HYPE Buyback and Burn

Hyperliquid has launched the AQAv2 mechanism, utilizing a portion of the earnings generated from the USDC reserves on the platform to accumulate funds. These funds will ultimately be transferred to an assistance fund to buy back and burn HYPE in the secondary market, thereby reducing its circulating supply. Under this mechanism, Circle is responsible for the technical deployment of USDC, while Coinbase manages the reserves; the stablecoin issuer is expected to share approximately 90% of the related reserve earnings with the protocol after deducting operational costs. Earnings will be accumulated over a 30-day cycle, with the first funds expected to be transferred on October 3. The market estimates that, based on the current USDC supply and yield rate, the annualized earnings could reach between $135 million and $160 million, although the actual buyback scale will still depend on the platform's USDC supply and reserve yield rate.

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