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Hyperliquid validators passed AQA v2 on Thursday, turning USDC reserve yield on the platform into a new source of HYPE buyback funding.
Yield starts accruing on August 26, with the first payment to the Assistance Fund scheduled for October 3.
What's the Scoop?
- How It Works: USDC on Hyperliquid is split between two accounts: a smaller Circle-managed account for technical functions and a larger Coinbase-managed treasury account. The
Coinbase portion earns reserve yield, which is shared with Hyperliquid after issuer costs and paid to the Assistance Fund every 30 days. - Why This Matters: The buyback program is funded entirely by stablecoin reserve yield, not by issuing new tokens. The amount of yield captured scales directly with USDC held on Hyperliquid, meaning the buyback rate grows as the platform's stablecoin TVL grows.
- The Coinbase Context: The vote follows Coinbase becoming Hyperliquid's official USDC treasury deployer under the AQA framework. Native Markets also agreed to sell Coinbase the USDH brand assets, with USDH markets set to sunset as Hyperliquid migrates more activity to USDC order books.
