# USDC Reserve Income Revenue Methodology

## 1. Overview

Revenue for USDC Reserve Income is measured as the portion of yield generated by the USDC backing HyperCore that is retained by the protocol under the Aligned Quote Asset (AQAv2) framework. This yield is paid to the protocol by the treasury deployer (Coinbase) based on its daily USDC balances held on HyperEVM. The earnings are calculated using a reference rate derived from the effective federal funds rate published by the Federal Reserve Bank of New York, adjusted by a yield scalar. A comprehensive view of the protocol's reserve asset monetization is provided by this metric.

## 2. Data sources

- **Blockchain events**: ERC-20 `Transfer` events for USDC involving the treasury deployer and technical deployer addresses on HyperEVM
- **External data**: Daily effective federal funds rate published by the Federal Reserve Bank of New York

## 3. Step-by-step calculation

### Component A: Deployer balance tracking

- **Purpose**: Track the daily USDC balances of the treasury and technical deployers on HyperEVM.
- **Logic**: ERC-20 `Transfer` events for USDC are filtered for the treasury deployer (Coinbase) and technical deployer (Circle) addresses. USDC transfer amounts are normalized by decimal precision. Daily net flows are calculated by subtracting outgoing transfer amounts from incoming transfer amounts for each address. Cumulative daily balances are computed by aggregating these net flows over time. A daily 0 UTC snapshot is established using the end-of-day balance from the preceding day, with missing days filled forward for the maintenance of continuous balance tracking.
- **Key fields**: `block_timestamp`, `from_address`, `to_address`, `amount`

### Component B: Reference rate ingestion

- **Purpose**: Retrieve and prepare the reference interest rate for yield calculations.
- **Logic**: The effective federal funds rate is ingested from the Federal Reserve Bank of New York. The raw rate percentage is normalized by dividing by 100. For non-business days where rates are not published, the last available rate is filled forward for the maintenance of a continuous daily rate series.
- **Key fields**: `timestamp`, `rate_percentage`

### Component C: Protocol revenue calculation

- **Purpose**: Calculate the daily USDC Reserve Income retained by the protocol.
- **Logic**: The daily treasury deployer balance is joined with the daily reference rate. The Aligned Quote Asset (AQAv2) rate is calculated by multiplying the reference rate by a cost adjustment factor of 0.85 multiplied by 487 divided by 480. Daily protocol revenue is then calculated by multiplying the treasury deployer balance by the adjusted rate, divided by 365 days for the determination of daily accrued yield. This revenue is mapped to the USDC Reserve Income product on HyperCore.
- **Key fields**: `treasury_balance`, `reference_rate`, `protocol_revenue`

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

fees * take_rate (illustrative — revenue is observed directly per project, not derived from take_rate)

Fee revenue retained after supply-side payouts. Before cost of revenue (e.g. L2 DA fees) and before operating expenses.

Revenue

Derivative exchanges

Hyperliquid generates revenue through on-chain perpetual futures and spot trading, facilitated by its HyperCore execution layer. Every order, trade, and liquidation occurs on-chain with one-block finality, enabling ultra-low latency and transparent trading. Liquidity providers and market makers earn supply-side fees from bid-ask spreads and transaction rebates, while network participants can earn governance and staking rewards via the HYPE token.

Hyperliquid is a layer-one (L1) blockchain purpose-built for trading and decentralized finance. It combines: HyperCore, the high-performance trading engine powering perpetuals, spot markets, and oracles; HyperEVM, a fully compatible smart contract layer enabling developers to build DeFi applications such as lending, vaults, governance, bridges, and stablecoins directly on-chain. Its consensus mechanism, HyperBFT, is a custom algorithm inspired by HotStuff, optimized for throughput (200k+ orders/sec) and deterministic finality. The HYPE token underpins the network, granting holders rights to participate in governance, staking, and securing the protocol — effectively letting users own a share of the Hyperliquid ecosystem.

HYPE tokenholders own, govern, and secure the Hyperliquid network through on-chain governance. The Hyper Foundation oversees community governance and ecosystem growth, ensuring decentralization and alignment of incentives across traders, builders, and validators. Hyperliquid’s investors include Tioga Capital Partners, Collab+Currency, Infinite Capital (San Juan), Optimista Capital, and RockawayX, all holding minority venture capital positions.

USDC Reserve Income

Revenue

Revenue

Chain breakdown