Hyperliquid Activates USDC Yield Sharing to Fund HYPE Buybacks

The protocol will collect approximately 90% of cost-adjusted reserve yield generated from USDC circulating on the network. Under the new structure, Coinbase manages the treasury, while Circle maintains the technical infrastructure, including minting and cross-chain transfer capabilities. Both entities staked 500,000 HYPE to facilitate the integration, with the treasury stake subject to slashing if funds prove insufficient for automatic deductions.

Revenue accrues in 30-day cycles, with transfers to the Assistance Fund occurring eight days after each period concludes. While market estimates suggest the initiative could generate between $135 million and $160 million annually, Hyperliquid has not issued an official yield forecast. Due to an initial implementation grace period, the first measurable payment is scheduled for October 3.

This move deepens the Assistance Fund’s resources, which already derive income from platform trading fees. Once funds reach the pool, they are used to acquire HYPE tokens from the open market. While these acquisitions remove tokens from active circulation, the protocol maintains a distinction between holding assets in the fund and the separate, secondary process of permanently burning them.