Hyperliquid Expands HIP-4 With Prediction Markets
The DEX is moving toward more open prediction markets with HIP-4, starting on testnet. Validators will still have oversight for now, while HYPE ticked higher after the announcement.
Key Takeaways
- Hyperliquid is working on a HIP-4 expansion for permissionless prediction markets, first on testnet and later on mainnet.
- New markets will need to fit templates approved by validators, while existing markets will stay under validator oversight for now.
- HYPE rose 1 percent after the announcement to $60.79, while a staking requirement of 500,000 HYPE applies.
Hyperliquid is developing an expansion to its HIP-4 upgrade that would bring permissionless prediction markets to the platform. The move pushes the decentralized exchange further into DeFi infrastructure, although existing markets will remain under validator oversight for now.
From Validators to Open Templates
Hyperliquid says more participants will eventually be able to launch prediction markets, as long as those markets fit within templates approved by validators. That marks a meaningful change from the current setup, where validators still have full control.
HIP-4 already went live on mainnet in May and introduced so-called outcome trading. This next phase builds on that framework and is meant to make contract launches more open. Hyperliquid said the permissionless version will debut on testnet first and then move to mainnet.
Why Prediction Markets Are Growing Fast
Prediction markets have become one of crypto’s more active niches. Platforms like Polymarket and Kalshi lead the space, which now handles billions of dollars in activity and lets users trade on outcomes ranging from rate decisions to sports events.
That growth has also drawn larger trading platforms such as Coinbase and Robinhood into the category, as they look to offer customers a single place for both traditional trading and predictions. Even so, the sector still faces ongoing questions around liquidity, market manipulation, and regulatory compliance, especially as DeFi tools become more open.
HYPE Reacts to the News
The rollout also comes with a staking requirement of 500,000 HYPE tokens. That stake can be slashed if a validator decides a prediction market is poorly defined or settled incorrectly. The market creator can earn up to 50 percent of trading fees.
The announcement sparked an immediate reaction in the token price. HYPE gained 1 percent in the hours after the news, moving from an intraday low of $59.88 (€52) to just above $60.50 (€53). The token was recently trading at $60.79 (€53).
Hyperliquid has faced scrutiny for some time over how permissionless the platform really is in practice, after that claim was also debated outside the market. That makes the push toward open prediction markets even more sensitive.
