Coinbase and Hyperliquid's partnership has taken another step forward. According to Coinbase's latest disclosure, the company has officially launched the USDC vault wallet deployment role on Hyperliquid and is running the AQAv2 framework through two designated addresses, allowing most of the revenue generated from USDC reserves to flow back into the protocol ecosystem.
Enable two specified wallet addresses
Reports indicate that Coinbase launched AQAv2 using two vault wallet addresses. The goal of this framework is to reinvest most of the profits generated from Hyperliquid USDC reserves back into the protocol system.
The article states that this structure could potentially add up to approximately $200 million in revenue for Hyperliquid annually. If this increase materializes, it could also expand the funding sources available for the agreement to repurchase HYPE.
On-chain explorer HypurrScan shows that one of the designated Coinbase addresses holds over $32 million worth of staked HYPE. The other address had no transaction records at the time of the report's publication.
Profit inflow may increase repurchase scale
Hyperliquid currently uses its Assistance Fund mechanism to allocate up to 99% of its protocol revenue for buybacks. With this allocation, if USDC reserve returns increase, the funds allocated for buybacks may also rise accordingly.
This means that this wallet deployment is not just a custody arrangement, but also relates to how protocol revenue flows back into the ecosystem and whether HYPE's buying sources will expand.
HYPE and ecosystem transaction volume rise in tandem
Following the announcement, HYPE rose 12% that day, briefly approaching $64 on June 8th, a significant rebound from its intraday low of nearly $57. Previously, influenced by a broader decline in the crypto market, HYPE had dipped to around $55.
However, HYPE remains below its previous all-time high of approximately $75.48. The market is still watching to see if it can maintain its current range after the rapid rebound.
The Hyperliquid ecosystem also maintained high activity levels. Trade.xyz, a HIP-3 decentralized exchange built on Hyperliquid, recorded a weekly trading volume of $16.18 billion last week, marking its best weekly performance since its launch last October.
Furthermore, Kraken's recent launch of HYPE staking has provided token holders with a new avenue for generating returns. As more traders continue to use USDC as collateral, liquidity and trading activity in the Hyperliquid derivatives market continue to rise.
