Odaily reported that HyperLiquid has announced an upgrade to the AQAv2 mechanism. Under the new design, the system will use automated on-chain transactions to maintain a dynamic 1:9 balance of USDC across two core addresses in every HyperEVM block. These two addresses correspond to the contract execution layer and the treasury reserve layer, separating funds according to their roles within the system.
USDC Balances Split Between Execution and Treasury Layers
According to the mechanism design, the 1:9 ratio is used to divide functions between “high-frequency trading and liquidation liquidity” and “long-term reserves and yield pools.” The contract execution layer is associated with trading and liquidation liquidity, while the treasury reserve layer is associated with longer-term reserves and yield-related functions. HyperLiquid said the arrangement is intended to improve system stability and isolate trading risk.
On the technical side, the balancing process is executed automatically through system transactions and does not require manual intervention. In practice, the system adjusts the USDC balances of the two core addresses on-chain according to the mechanism’s requirements, keeping the set ratio in place in each HyperEVM block. The deployment responsibilities are also specified: Circle is responsible for the technical deployment, while Coinbase handles treasury deployment and management.
Reserve Yield to Be Settled on a 30-Day Cycle
The AQAv2 mechanism also sets out rules for reserve yield distribution. Stablecoin issuers are required to allocate approximately 90% of the cost-adjusted reserve income generated within the HyperLiquid system to the protocol side. The yield is accumulated and settled on a 30-day cycle, and it will be automatically transferred to the Assistance Fund on the eighth day after the end of each cycle.
The mechanism includes a transition schedule. Yield accrual begins on August 26, and the first yield payment is scheduled for October 3. The report stated that the market views this design as marking an evolution of stablecoins from a traditional custody structure toward an on-chain infrastructure model based on “protocolized fund layering plus automated yield distribution.”