Hyperliquid to Buy Back Tokens With Circle Reserve Income, First Burn Due Oct. 3
Summary
- Hyperliquid said it will buy back and burn its own token using reserve income from Circle's USDC reserves.
- It said the core of the AQAv2 framework is to direct income from reserve assets allocated under its agreement with Coinbase into Hyperliquid buybacks.
- Hyperliquid said it will begin receiving reserve income starting Aug. 26 and plans to carry out its first token buyback and burn on Oct. 3.
Forecast Trend Report by Period
Hyperliquid, a global decentralized exchange, will buy back and burn its own token using income generated from Circle's USDC reserves.
Wu Blockchain and other outlets reported on Aug. 26 that Hyperliquid had applied the AQAv2, or Aligned Quote Asset v2, framework to its platform that day.
AQAv2 is centered on using income from Circle's reserve assets to fund Hyperliquid token buybacks. Hyperliquid previously signed an agreement with Coinbase to share revenue generated from the management of Circle's reserves.
The share of Circle reserve income allocated to Hyperliquid will be used to repurchase Hyperliquid tokens, which will then be permanently burned.
Reserve income distribution to Hyperliquid begins on Aug. 26. The first token buyback and burn is scheduled for Oct. 3.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul