Author: Claude, Deep Tide TechFlow

Deep Tide Overview: Crypto KOL @TheDeFiInvestor lists this week's catalyst list. The most significant is that the revenue sharing agreement between Hyperliquid and Circle for USDC will officially begin accumulating revenue on August 26. The platform currently holds over 5 billion USD in USDC, and analysts estimate it could contribute between 135 million and 160 million USD annually to HYPE buybacks. The Solana inflation reduction proposal SIMD-0550 is reportedly about to enter voting, aiming to double the annual deflation rate from 15% to 30%, potentially reducing future token emissions by about 1.5 billion USD at current prices. Circle will release its Q2 financial report on August 5, and the market will focus on the growth of USDC circulation and the impact of Hyperliquid's revenue sharing on profit margins. The Paradex TAP airdrop claim deadline is August 4.

HYPE: USDC revenue sharing starts on August 26, with 135 million to 160 million USD buyback funds entering the market

This is currently the clearest source of buyback increment in the DeFi space.

According to Bankless on June 12, Hyperliquid validators have approved the AQA v2 proposal. This proposal will direct 90% of the reserve earnings generated from USDC deposits on the Hyperliquid platform into the Assistance Fund for HYPE buybacks. Earnings will start accumulating from August 26, with the first payment scheduled for October 3.

Structural breakdown: USDC on Hyperliquid is divided into two accounts. The smaller part is managed by Circle, responsible for technical functions; the larger part is managed by Coinbase, acting as the treasury. The portion managed by Coinbase invests in reserve assets like U.S. short-term Treasury bonds and generates income, with 90% shared with Hyperliquid after deducting issuer costs, paid every 30 days.

According to CoinDesk's report in May, Ryan Watkins, co-founder of Syncracy Capital, estimates that based on the current stock of about 5 billion USD in USDC, this revenue sharing could provide 135 million to 160 million USD for HYPE buybacks annually. If the stock continues to grow, annual income could rise to between 300 million and 500 million USD. Compass Point analysts warn that this deal could cut up to 80 million USD from Circle and Coinbase's annual EBITDA.

This income forms a dual engine with Hyperliquid's existing trading fee buyback. According to MEXC citing CoinGecko data, Hyperliquid bought back HYPE for 644 million USD throughout 2025, accounting for 46% of the total token buybacks in the industry. The value of USDC revenue sharing lies in its disconnection from trading volume and its connection to deposit size, making it more resistant in a bear market compared to trading fees.

SOL: Inflation reduction proposal SIMD-0550 reportedly about to go to vote

The inflation debate for Solana has entered its third round.

According to Solana Compass in June, SIMD-0550 was submitted by Helius engineer lostintime101, and Solana Labs co-founder Anatoly Yakovenko has publicly supported it. The proposal aims to double Solana's annual deflation rate from 15% to 30%, keeping the terminal inflation rate at 1.5% but compressing the time to reach the terminal from about 5.7 years to about 2.8 years. At current prices, this is expected to reduce future SOL token emissions by about 1.5 billion USD.

Helius CEO Mert stated on June 3 on the X platform that the proposal has been "restarted" and expressed optimism that "this time it will succeed."

According to WEEX in June, Anza CEO Brennan Watt stated that SIMD-0550 and SIMD-0553 (which increases SOL deflation through transaction fee burning) have both received concept acknowledgment (concept ACK) and are expected to be advanced and completed within the year. If both proposals are implemented simultaneously, the annual inflation reduction rate will increase from 15% to 30%, while the daily SOL burning amount will increase from about 650 SOL (approximately 47,000 USD) to a maximum of about 9,000 SOL (approximately 646,000 USD).

The risk lies in past experiences. SIMD-0228 was an earlier version in the same direction that only garnered 37.8% support from validators when voted in March 2025, far below the 66.67% supermajority threshold. Validators' nominal yields would decline (from 4.93% in the first year to 4.34%, and from 3.52% in the third year to 2.25%), putting pressure on smaller validators.

CRCL: Circle will release Q2 financial report on August 5, focusing on USDC circulation and profit margins

According to Circle's official announcement, Circle (NYSE: CRCL) will release its Q2 financial report for 2026 before the U.S. stock market opens on August 5 and hold a video live stream at 8 a.m. ET.

Q1 data review: According to Circle's financial report, USDC circulation increased by 28% year-on-year to 77 billion USD, and on-chain transaction volume increased by 263% year-on-year to 21.5 trillion USD. Total revenue and reserve revenue grew 20% year-on-year to 694 million USD, and adjusted EBITDA increased by 24% year-on-year to 151 million USD, with a profit margin of 53%.

There are two key highlights in the Q2 financial report. The first is the month-on-month change in USDC circulation. If Q2 sees a renewed acceleration in growth, it will validate the structural demand for USDC in the DeFi and payments sectors. The second is the potential impact of Hyperliquid AQA on profit margins. Compass Point previously estimated that this transaction could cut up to 80 million USD from Circle and Coinbase’s annual EBITDA, and the market will focus on management's response to such revenue sharing arrangements.

The current stock price of CRCL is about 62.61 USD, with a median analyst target price of about 112 USD and a high of 190 USD. The market is expecting Q2 EPS to be about 0.17 USD.

Other catalysts overview

Paradex TAP airdrop claim deadline is August 4. Paradex is a perpetual contract exchange on Starknet, and the claim window for the TAP token airdrop is about to close. Users holding DIME tokens should pay attention to the deadline.

Sei Network is about to announce "major news." @TheDeFiInvestor only stated that Sei will have a major announcement, but did not provide specific content or time. SEI's current price is about 0.04 USD, down about 2.2% over the past seven days. Without substantive information, the signal-to-noise ratio of such announcements is relatively low.

Variational Swaps is expected to launch in August. Variational previously received funding support from the Arbitrum Foundation, and the new Swaps product is positioned to improve its RWA market. The specific launch date has not been announced.

Extended will clean up score manipulation behavior next week. Extended will delete points from "non-organic or manipulative activities." Users holding Extended points who rely on automated tools for scoring may face point nullification.