Hyperliquid activated its Aligned Quote Asset v2 framework on Wednesday, August 26, 2026. The system will direct 90% of USDC reserve yield to the Assistance Fund. It creates a second route for buying back HYPE.
Yield accrual began on Wednesday, with revenue calculated in 30-day cycles. The proceeds will reach the Assistance Fund eight days after each cycle ends. The first payment is scheduled for October 3.
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How Will AQAv2 Convert USDC Yield Into HYPE Buybacks?
Coinbase serves as the treasury deployer, whereas Circle is the technical deployer. Both firms have already staked HYPE before the activation. The protocol itself splits USDC between technical and treasury wallets in a 1:9 ratio.
Such a ratio will ensure that 90% of the balance will remain in the treasury wallet. Meanwhile, it ensures the balance needed for the Hyperliquid protocol operation stays at the technical wallet. This automated process does not require any balance adjustment between two wallets.
Market estimations indicate annual inflow from $135 million to $200 million. It will depend on the amount of USDC in reserves and yields. USDC balances are estimated to be around $5 billion to $7 billion.
According to these data, the first allocation will allow purchasing up to $20 million worth of HYPE. However, these estimates are projections rather than guaranteed returns.
What Drives Hyperliquid’s HYPE Buybacks Under AQAv2?
Hyperliquid already directs nearly 99% of trading-fee revenue to the Assistance Fund. The fund uses income for open-market HYPE purchases. AQAv2 adds revenue linked to stablecoin deposits instead of trading volume.
The two funding routes respond to different conditions. The fee stream varies based on transaction volumes. Reserve income relies on USDC balances and returns. The combined purchase could increase if both platform usage and USDC balances grow.
The notice confirms that the reserve income will be used for the fund. It does not confirm that all purchased tokens would be burned immediately. Hyperliquid could burn all funds’ holdings using the approved protocol actions.
The buyback takes out HYPE out of the circulation when it is in the fund. Burning tokens reduces the total supply. Distinguishing between the two shows how AQAv2 affects circulating and total supply.
What Happened to HYPE Price and Wintermute’s Short Position?
As of press time, HYPE is trading at $83.08, showing an increase of more than 2% in 24 hours. The trading volume has also gone up by about 7%. The price increase followed the activation of Hyperliquid’s reserve-based buyback mechanism.
In addition, Wintermute reduced its short position in Hyperliquid from $211.53 million to $80.48 million, according to Onchain Lens. At the same time, it retained a long position of $5.51 million. The account’s short positions were much higher than its long positions.
This position change represents a decrease in the short position of $131.05 million in the Wintermute’s tracked account. Onchain Lens reported both the short and long figures.
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