The crypto trading platform $HYPE (+0,53 %) is tapping into an additional source of revenue to support its in-house token #hyperliquid. Already, the majority of fee revenue is being used to repurchase $HYPE (+0,53 %) on the market. According to estimates, the platform generated total revenue of more than $1.4 billion and spent approximately $1.26 billion of that on buybacks.
Interest income is now being added to this: The stablecoin USDC, a cryptocurrency pegged to the U.S. dollar, is backed by cash and bonds that generate interest. A portion of this interest will be paid $HYPE (+0,53 %) in the future for the USDC holdings on its platform. The first payment under this agreement, known as AQAv2, was made on October 3 and amounted to approximately $14.5 million. The funds will be used for additional $HYPE (+0,53 %)purchases. The acquired tokens are permanently destroyed (“burned”) and thus removed from circulation.
For $HYPE (+0,53 %)holders, this means additional demand amid a declining supply. The more USDC in $HYPE (+0,53 %) , the greater the potential new revenue stream. Future payments, however, depend on the holdings and interest rates.
