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Hyperliquid plans permissionless prediction markets under HIP-4, with creators eligible for up to 50% of fees

Hyperliquid plans permissionless prediction markets under HIP-4, with creators eligible for up to 50% of fees

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News Editor
2026-07-21 11:21:36
Hyperliquid said it is moving ahead with a broader push into prediction markets by expanding HIP-4, a change that would eventually let anyone deploy prediction market contracts on the platform. The company said the new setup will use standardized templates approved through validator voting, while existing prediction markets will remain validator-created until the new framework is fully opened. The rollout is set to begin on testnet before moving to mainnet. Under the proposed model, anyone creating a market will need to stake 500,000 HYPE, Hyperliquid’s native token, as collateral. That stake can be slashed if validators determine that a market is poorly defined, has major design flaws, or ends with an incorrect resolution. In exchange, market creators may receive as much as 50% of trading fee revenue. Hyperliquid said validator-created official markets will continue after permissionless deployment, but in much smaller numbers, with an ideal target of fewer than 10 such markets per year. The announcement came as prediction markets draw heavier competition from platforms including Polymarket and Kalshi, and after HYPE rose following the news.
Hyperliquidprediction marketsHIP-4HYPEPolymarketKalshiOutcome Trading

Hyperliquid is preparing a deeper move into prediction markets, saying it will expand HIP-4 so that anyone can eventually deploy prediction market contracts on the platform. The decentralized perpetuals exchange disclosed the plan on Telegram, setting up a direct challenge to a market now led by Polymarket and Kalshi.

HIP-4 upgrade targets permissionless market creation

According to Hyperliquid, the Outcome Trading feature introduced under HIP-4 will allow users to create prediction market contracts using standardized templates that have been approved by validator vote. Until the feature is fully opened, existing prediction markets on the platform will continue to be created and managed by validators.

HIP-4 was deployed to the Hyperliquid mainnet in May this year, and the platform already supports Outcome Trading. Hyperliquid said permissionless prediction markets will first go live on testnet, then move to mainnet after the mechanism is shown to be stable.

Creators will need to stake 500,000 HYPE

Once launched, anyone will be able to deploy a prediction market, but only after staking 500,000 HYPE as collateral. HYPE is Hyperliquid’s native token.

That collateral may be slashed if validators decide that a market is unclearly defined, contains major flaws in its rule design, or ends with an incorrect final settlement. As compensation, developers who create prediction markets may receive up to 50% of trading fee revenue.

Hyperliquid also said official markets created by validators will remain on the platform after permissionless deployment begins, though the number is expected to fall sharply. In the company’s preferred setup, validators would create fewer than 10 markets per year, with most markets built and maintained by the community.

Prediction markets are drawing more competitors

Prediction markets have become one of the faster-growing areas in the blockchain sector in recent years. They let users trade on the outcomes of specific events, including central bank rate decisions, presidential elections, and sports events, with market prices reflecting the probability of those outcomes.

Polymarket and Kalshi currently dominate the global prediction market sector. The source article said the market has already grown beyond several billion dollars. As demand rises, more large financial platforms are entering the segment. During the 2026 FIFA World Cup, which concluded earlier this year, cumulative prediction market trading volume exceeded $50 billion, drawing interest from centralized platforms including Coinbase and Robinhood that want to offer one-stop access to both prediction markets and traditional financial products.

HYPE rose after the announcement

Market reaction was positive after the update was announced. HYPE rose about 1% at one point, rebounding from an intraday low of $59.88 to above $60.5. The latest quoted price was about $62.55, up 3.3% over the past 24 hours.

The upgrade points to a broader product expansion for Hyperliquid, extending its reach from decentralized derivatives trading into prediction markets as it competes more directly with Polymarket and Kalshi.

This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan.
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