HyperLiquid Upgrades to AQAv2 Mechanism: Dynamic 1:9 Balance of USDC in Contract and Treasury Addresses

Odaily Planet Daily reported that HyperLiquid has announced an upgrade to the AQAv2 mechanism. The system will automatically execute on-chain transactions in each HyperEVM block to maintain a dynamic 1:9 balance of USDC between two core addresses, corresponding to the contract execution layer and the treasury reserve layer.

According to the mechanism's design, this ratio is used to functionally separate "high-frequency trading and liquidation liquidity" from "long-term reserves and yield pools," thereby enhancing system stability and isolating trading risks.

From a technical perspective, this balancing process is executed automatically by the system transactions without human intervention. Circle is responsible for the technical deployment, while Coinbase handles the deployment and management of the treasury.

Regarding the yield mechanism, AQAv2 stipulates that stablecoin issuers must allocate approximately 90% of their cost-adjusted reserve yield generated within the HyperLiquid ecosystem to the protocol. This yield accumulates on a 30-day cycle and is settled, with the proceeds automatically transferred to the Assistance Fund on the 8th day after the cycle ends.

Additionally, the mechanism includes a transition period arrangement:

1. Yield accrual begins: August 26;

2. First yield payment: October 3.

The market believes this design marks an evolution of stablecoins from traditional custodial structures toward an on-chain infrastructure model characterized by "protocol-based capital stratification + automated yield distribution."