Hyperliquid’s USDC reserve funding sends $14.58M to HYPE buybacks

Hyperliquid has started drawing on a new revenue stream to support HYPE token buybacks after receiving its first USDC reserve funding payment of $14.58 million under the AQAv2 framework.

Key takeaways

• Hyperliquid collected an initial $14.58 million USDC payment tied to the AQAv2 framework.
• The payment covers a 30-day period and opens a funding channel beyond trading fees.
• About 90% of cost-adjusted reserve yield on USDC supply flows to the protocol.
• That yield is routed through the Assistance Fund, which buys HYPE tokens.

First payment routed through the Assistance Fund

According to a post published on X by WuBlockchain, the transfer marks the first time Hyperliquid has tapped USDC reserve funding as a dedicated source for HYPE buybacks, instead of relying only on trading fee revenue. The AQAv2 framework directs about 90% of the cost-adjusted yield earned from USDC reserve supply back to the protocol.

That shared yield is then routed to the Assistance Fund, the mechanism responsible for purchasing HYPE on the open market. The initial payment, confirmed at $14.58 million, covered a 30-day period, per the same post.

Crypto Briefing, which also reported on the payment, said the AQAv2 protocol was activated in August 2026 and is designed to direct eligible USDC reserve yield into buybacks on a recurring basis.

The arrangement ties HYPE buybacks to USDC reserves held within Hyperliquid’s ecosystem, giving the protocol a funding stream separate from its trading fee income.

Article produced with the assistance of artificial intelligence and reviewed by the editorial team.