HyperLiquid Upgrades to AQAv2 Mechanism: Dynamic 1:9 USDC Balance Between Contract and Treasury Addresses
Odaily News: HyperLiquid has announced an upgrade to the AQAv2 mechanism. The system will automatically execute on-chain transactions to maintain a dynamic 1:9 USDC balance between two core addresses in each HyperEVM block, corresponding to the contract execution layer and the treasury reserve layer respectively.
According to the mechanism design, this ratio is used to create a functional hierarchy between "high-frequency trading and liquidation liquidity" and "long-term reserves and yield pools," aiming to enhance system stability and isolate trading risks.
On the technical front, the balancing process is executed automatically by the system without human intervention. Circle is responsible for the technical deployment, while Coinbase undertakes the deployment and management of the treasury.
Regarding the yield mechanism, AQAv2 stipulates that stablecoin issuers must distribute approximately 90% of their cost-adjusted reserve earnings generated within the HyperLiquid ecosystem to the protocol. Settlement occurs on a 30-day cycle, and the earnings will be automatically transferred to the Assistance Fund on the 8th day after the cycle ends.
Additionally, the mechanism includes a transition period arrangement:
1. Income accrual begins: August 26;
2. First income distribution: October 3.
Market observers believe this design marks the evolution of stablecoins from a traditional custodial structure towards an on-chain infrastructure model of "protocol-based capital stratification + automated yield distribution."
