The Information · Circle · S&P 500 · Coinbase · CryptoSlate
Native Markets built an answer to that question, and USDC brought the liquidity
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Under AQAv2, Coinbase serves as the protocol's treasury deployer and shares the vast majority of reserve-yield revenue from Hyperliquid's USDC supply with the protocol.
Key facts
- USDC already held the dominant position, as Coinbase reported USDC on Hyperliquid reached roughly $5 billion, and DeFiLlama's Hyperliquid L1 dashboard showed USDC at approximately 93.5%
- At 70% sharing, the protocol receives $105 million to $157.5 million annually, and at 90%, $135 million to $202.5 million
- DeFiLlama showed Hyperliquid's trading scale at roughly $6.16 billion in 24-hour perps volume, $41.05 billion in 7-day perps volume, and approximately $9.4 billion in open interest
- Hyperliquid's AQAv2 broke that arrangement at a venue large enough to set a precedent, with $41 billion in 7-day perps volume, and $9.4 billion in open interest, putting Hyperliquid in the bracket
Summary
HYPE rallied after Coinbase and Circle committed to Hyperliquid’s AQAv2 upgrade, bringing USDC’s liquidity together with the protocol-aligned yield model pioneered by USDH. Coinbase and Circle's commitment to Hyperliquid's AQAv2 upgrade sent HYPE up to roughly $45 on May 14, a deal that makes USDC the platform's aligned quote asset and directs the vast majority of reserve-yield revenue back to the protocol. The rally reflected traders reading the announcement as institutional validation of the protocol-aligned stablecoin model pioneered by Native Markets' USDH on Hyperliquid. Under AQAv2, Coinbase becomes the official USDC treasury deployer on Hyperliquid. Native Markets separately granted Coinbase the right to purchase USDH brand assets, while Native Markets stays independent as an organization.