Author: John Chen
Compiled by: Shencha TechFlow
Shencha Insight: Hyperliquid’s first AQAv2 framework proceeds of about $14.58 million in USDC are set to be transferred to the Assistance Fund, for public-market purchases and the burning of HYPE. From now on, buyback funding also has a quiet fuel line decoupled from trading volume and tied to stablecoin reserve yield.
The first proceeds under the AQAv2 framework will be transferred into the Assistance Fund, linking HYPE buybacks to stablecoin deposits rather than focusing only on trading volume.
Hyperliquid is about to start using a sum of money that has no relationship to anyone’s trading volume to place a buy order for HYPE repurchases.
As of October 3, 2026, the first payout under the exchange’s AQAv2 framework—about $14.58 million in USDC—is awaiting transfer into Hyperliquid’s Assistance Fund. This roughly matches the market’s prior expectations of about $15 million. For a token whose buyback engine has traditionally been driven solely by trading fees, this effectively adds a second, quieter fuel line.
How does the USDC earnings machine work?
Under AQAv2, the net earnings generated by Hyperliquid’s USDC reserves—about 90%—are directed to the aid fund. The fund then uses this money to buy HYPE on the open market and burn it.
Accrual of收益 begins on August 26, 2026. The payment pending for transfer covers exactly the first accumulation period.
On June 12, 2026, validators approved the framework with a 69.08% support rate.
At either end of the pipeline are two big names in the stablecoin world: Coinbase handles official USDC treasury deployment, while Circle is responsible for the technical deployment. This arrangement runs under a 1:9 balance requirement on the technical side versus the treasury side.
Current reserves are estimated to be between $5 billion and $6.7 billion. Based on the current yield rate of about 3%, considering only the reserve item, it is expected to provide $135 million to $200 million in funds for buybacks each year.
Layered atop the fee machine
About 99% of Hyperliquid’s trading fees are injected into the aid fund. Estimates suggest that the trading fees provide an annualized buyback capacity of roughly $771 million.
Add the USDC earnings on top, and the estimated total annualized buyback capacity exceeds $900 million.
The aid fund has already accumulated purchases of roughly 45 million HYPE at lower price ranges, spending about $1.1 billion. Since the coin launched in late 2024, the cumulative amount burned has reached the hundreds of millions of units level.
Background: Why income independent of trading volume matters
Hyperliquid is a decentralized perpetual contract trading venue running on its own Layer 1 blockchain. Perpetual contracts (perps) have no expiry date, so traders can hold leveraged positions indefinitely.
AQAv2 slightly changes the equation. Even if trading slows, stablecoin deposits often remain on exchanges—because traders tend to park collateral between positions. The returns on these balances, whether or not anyone opens new positions, continue to flow in.
What does this mean for HYPE holders and perpetual markets?
This framework relies on Coinbase and Circle as USDC deployment partners. This means that part of the HYPE token economy is tied to the operational health and policies of these two centralized companies.
A 69.08% validator support rate indicates the proposal has a foundation, but nearly a third still did not back it. Future adjustments to revenue-sharing or buyback mechanisms will face the same scrutiny.
What to watch in the near term is whether the roughly $14.58 million payment actually gets transferred into the aid fund. Once the transfer is completed, the market will be able to see for the first time how much buy pressure the new mechanism can create in practice.