Hyperliquid has officially activated its Aligned Quote Asset v2 (AQAv2) framework on Wednesday. This will allow the protocol to buy back and burn HYPE tokens from generated USDC reserve yields. This creates a second buyback route alongside the existing trading fee-driven program.
Hyperliquid to Buy Back and Burn Tokens Via USDC Reserve Yields
Hyperliquid activated its “AQAv2” framework on August 26. This directs 90% of yields generated from USDC reserves towards the Assistance Fund for buybacks and burns of the native HYPE token.
Coinbase will serve as the treasury deployer, while Circle acts as the technical deployer. Both companies previously staked HYPE to activate the mechanism. USDC balances are automatically managed in a set ratio between technical and treasury addresses.
Yield accrual begins today, with revenue settled on 30-day cycles and automatically transferred to the Assistance Fund eight days after each interval ends. The first payout is scheduled for October 3.
Market estimates place potential annual contributions in the $135-200 million range, depending on the size of USDC reserves currently reported around $5–7 billion and prevailing yields. The initial allocation could support roughly $20 million in HYPE buybacks.
Hyperliquid already uses 99% of trading fees for HYPE buybacks and burns. AQAv2 adds a revenue stream that scales with stablecoin deposits rather than trading volume. The combined engines could push annualized buyback massively, turning HYPE more deflationary as platform activity and USDC holdings grow.
Will HYPE Price Hit New ATH?
HYPE price jumped more than 5% from the 24-hour low of $78.49, with the price currently trading at $82. It is just 1.4% away from hitting its all-time high of $83.27, with a 24-hour high of $83.04.
Furthermore, trading volume has increased slightly by 2% in the last 24 hours as Hyperliquid activates another engine to buy back and burn HYPE tokens from USDC reserve yields. HYPE price rallied after President Trump confirmed the CFTC’s efforts to bring Hyperliquid into the US.
Notably, Wintermute has also reduced its Hyperliquid short exposure from $211.53 million to $80.48 million, according to Onchain Lens. It still holds $80.48 million in shorts versus $5.51 million in longs.
CoinGlass data showed buying sentiment in the derivatives market. At the time of writing, the total HYPE futures open interest jumped 3% to $3.58 billion in the last 24 hours. 4-hour futures OI on CME climbed almost 4% and 3% on Binance.
As buying sentiment surges, traders are increasingly relying on high leverage crypto exchanges to amplify their positions.
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