Hyperliquid Assistance Fund Buys Back $890M Worth of HYPE Tokens

Hyperliquid’s Assistance Fund maintains significant holdings amid record trading activity, as its HYPE token defies broader market declines with strong weekly gains.

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HYPE

Summary

Hyperliquid’s Assistance Fund continues to hold over 40 million HYPE tokens valued at about $1.25 billion, representing roughly 4% of the total supply as of February 1. The holding follows an earlier buyback of 40,028,984 HYPE tokens worth around $890 million. Meanwhile, Hyperliquid’s permissionless markets—launched via HIP-3 last October—have reached record levels with $1 billion in open interest and $4.8 billion in 24-hour volume, driving a 41% weekly gain in HYPE despite bitcoin’s 11% slide. HIP-3 allows users to create new markets across multiple asset classes by staking 500,000 HYPE tokens, broadening participation in market making.

Terms & Concepts
  • HYPE token: The native cryptocurrency of the Hyperliquid platform, used for ecosystem transactions and governance.
  • Token buyback: The repurchase of cryptocurrency tokens from the market by an entity to reduce supply or stabilize price.
  • HIP-3: Hyperliquid Improvement Proposal 3, a governance measure enabling users to create new markets for various assets by staking HYPE tokens.