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

Odaily Planet Daily News: HyperLiquid announced an upgrade to the AQAv2 mechanism. The system will use on-chain automated trading to maintain a dynamic 1:9 ratio balance of USDC balances in two core addresses within each HyperEVM block, corresponding to the contract execution layer and the treasury reserve layer, respectively.

According to the mechanism design, this ratio is used for functional layering between "high-frequency trading and liquidation liquidity" and "long-term reserves and income pools," aiming to enhance system stability and isolate trading risks.

On the technical level, the balancing process is automatically executed by the system transaction, requiring no manual intervention. Circle is responsible for the technical deployment, while Coinbase undertakes the treasury deployment and management.

Regarding the income mechanism, AQAv2 stipulates that stablecoin issuers must distribute approximately 90% of their cost-adjusted reserve income generated within the HyperLiquid ecosystem to the protocol. Settlement occurs on a 30-day cycle, and the income 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. Start of income accrual: August 26;

2. First income payment: October 3.

The market believes that this design marks the evolution of stablecoins from a traditional custody structure towards an on-chain infrastructure model characterized by "protocol-based fund stratification + automated income distribution."