Hyperliquid upgrades to AQAv2, will return USDC interest to ecosystem

Decentralized perpetual futures exchange Hyperliquid (HYPE) has announced an upgrade to its AQAv2 mechanism, which automatically adjusts the USDC balance between its contract execution layer and treasury reserve layer at a 1:9 ratio. The system, designed for risk isolation, operates without manual intervention. Technical deployment will be handled by Circle (CRCL), with treasury management provided by Coinbase (COIN). Under the AQAv2 mechanism, stablecoin issuers operating reserves within the Hyperliquid ecosystem are required to share 90% of the interest earned with the exchange. Previously, all interest generated from user-deposited USDC was retained by Circle and Coinbase. The upgrade ensures this revenue is now returned to the Hyperliquid ecosystem. Revenue settlement is set to begin on Aug. 26, with actual payments to Hyperliquid commencing on Oct. 3. Hyperliquid plans to use these funds for HYPE token buybacks or as a source for user rewards.