Hyperliquid has a feature that separates it from most crypto tokens. The protocol routes 99% of its trading fees into daily open-market purchases of its native token, HYPE. Most other protocols generate real revenue, but very little of that money flows back to token holders.
Key Takeaways:
- Hyperliquid routes 99% of trading fees into daily open-market purchases of HYPE.
- A reserve yield from $5 billion in USD Coin adds roughly $140 million to $160 million annually to the fund.
- DIME’s second-largest position is the Hyperliquid Staking ETP, at about 13% of assets.
Luke Nolan, CoinShares’ senior Ethereum research associate, detailed the distinction in a June report. The mechanism functions similarly to a corporate share buyback. That structure lets analysts value HYPE more like a stock than a speculative token.
The vehicle for this is called the Assistance Fund. To date, it has purchased roughly 44.4 million HYPE tokens, worth about $2.2 billion, according to the report. Unlike a straight token burn, the fund places buy orders below the market price. It then sends purchased tokens to an address that can never be accessed. The dual effect is a reduction in circulating supply alongside ongoing price support.
Revenue and purchasing activity are directly tied. If Hyperliquid earns more, the fund buys more HYPE on the open market, per the report.
Hyperliquid’s Reserve Yield Runs Independently of Trading Volume
Trading fees are not the only revenue source. Hyperliquid holds roughly $5 billion in USD Coin (USDC) on its platform as collateral from traders. That reserve earns a short-term yield of 3.5% to 4%. Per the report, 90% of that income flows back into the Assistance Fund. Coinbase Global, Inc. (COIN) now serves as the official treasury manager for those reserves. At current rates, that arrangement contributes an estimated $140 million to $160 million per year to the fund.
That second revenue stream matters for a specific reason. It feeds the fund regardless of how much trading activity occurs on the platform, per the report.
On the supply side, team vesting distributions have run well below their scheduled pace, according to the report. The vesting contract allows for roughly 9.9 million HYPE per month. But actual monthly distributions have fallen between 140,000 and 1.75 million tokens. Combined with the daily purchasing activity, HYPE has been a net deflationary asset.
The CoinShares Altcoins ETF (DIME) offers investors access to this space. DIME holds the CoinShares Hyperliquid Staking ETP as its second-largest position, at nearly 13% of assets, per ETF Database. Launched in October 2025, the actively managed, equally weighted fund carries a 0.00% expense ratio.
For more news, information, and strategy, visit the CoinShares Crypto ETF Hub.