First AQAv2 payment executed, transferring 14.58M USDC to the Assistance Fund on Hyperliquid.
DeFi & Yields ·
The AQAv2 treasury mechanism executed its inaugural payment on October 3rd, transferring 14.58M USDC from Hyperliquid's interest address to the Assistance Fund. This transfer represents the protocol's first revenue collection under a new model where deposits themselves generate earnings independent of trading activity.
The mechanism works by charging the treasury balance daily at the AQA rate, with accumulated balances paid out every 30 days to purchase HYPE tokens. The first payout covered 30 daily readings from August 26th through September 24th, implying an average rate of approximately 3.14% annually on the treasury's balance—roughly 193M per year at current levels. This supplements Hyperliquid's existing revenue from trading fees, creating a dual income stream that earns whether traders actively transact or hold positions passively.
The arrangement involves Coinbase and Circle each staking 500,000 HYPE as collateral, with missed payments carrying a 2% daily penalty to Coinbase's stake. Combined with existing trading fee revenue, the model is expected to generate approximately 15.4 cents annually per dollar of deposited margin under current market conditions.