19 out of 26 validators vote to pass Hyperliquid’s AQAv2 stablecoin model

Circle has made the single largest USDC transfer ever on HyperEVM, following the validator approval of Hyperliquid’s much-awaited AQAv2 protocol. 

Earlier today, Circle moved approximately $4.4 billion in USDC to Coinbase via AQAv2, Arkham data shows. 

Both Circle and Coinbase partnered with Hyperliquid in May for the implementation of AQAv2, with Coinbase serving as the treasury deployer to make USDC “the most aligned stablecoin on Hyperliquid.”

AQAv2 is a framework aimed at aligning stablecoins, such as USDC, which are not exclusive to the Hyperliquid protocol. Stablecoins issued under AQAv2 will be designated as “aligned quote assets,” meaning they will become the default quote assets against HIP-4 and validator-operated perp markets on a future network upgrade.

In return, stablecoin deployers will share approximately 90% of the cost-adjusted reserve yield revenue from their Hyperliquid supply with the protocol, which is used to buy back more HYPE tokens from the market. 

AQAv2  passes validator vote

The final step of AQAv2 implementation has just been completed, with 19 out of 26 validators (69.08%) voting YES to approve the stablecoin model. 

AQAv2 reserve yield revenue will accrue in a 30-day interval, starting August 26 and ending October 3. The payment will automatically be sent to Hyperliquid’s Assistance Fund 8 days after each 30-day period, which goes back to buying more HYPE tokens off the market. 

There are reportedly over $5 billion in USDC on Hyperliquid. The supply is expected to generate up to $200 million in additional revenue to the network with AQAv2 implementation. The revenue grows higher as more USDC are deployed. 

At the time of writing, HYPE was trading at $59.55, up nearly 4% on the 24-hour timeframe. 

Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free.