Hyperliquid will soon allow anyone to create and launch prediction markets based on future outcomes without needing permission. They’re testing this new feature on a test network first, with plans to release it on the main platform afterward.
Summary
- Hyperliquid plans to introduce permissionless deployment for HIP 4 outcome markets, starting on testnet before a mainnet rollout.
- Market deployers will need to stake 500,000 HYPE and can face slashing for incorrect or delayed market settlements.
- The proposal follows HIP 4’s launch in May, with prediction markets generating about $100 million in trading volume during the first month.
Hyperliquid announced on Telegram Sunday that they’re updating their system to better handle a growing type of market called ‘outcome markets’. These markets have so many different potential events to trade that they require more than just the usual system of validators to keep things running smoothly.
The new system will let validators decide on standard formats for creating markets. These approved formats will be saved on the blockchain and automatically enforced, meaning anyone can launch a new market following those rules without needing individual approval from validators each time.
After a template is approved, users can create specific markets based on it and will manage those markets according to the established rules. Hyperliquid also stated that while official markets created by validators will still be available, they anticipate these will be uncommon – likely with less than ten new ones launched each year through validator voting.
Deployers face staking and settlement requirements
To join the network, those setting up HIP-4 systems must lock up 500,000 HYPE tokens. Hyperliquid explains that validators can reduce (or completely eliminate) this locked amount if markets aren’t set up correctly, settlements are wrong, or issues remain unresolved for over a week.
As I understand it, this new system works a lot like our existing HIP-3 process. The funds committed as stake will be held for another six months, and anyone deploying capital needs to close out all their open positions before they can access those funds again.
Initially, each market creator will be able to create markets covering up to 100 different results, which translates to 200 outcome tokens. Markets with multiple possible outcomes will use more of this allowance, but once a market is finalized, that capacity becomes available again for new markets. Hyperliquid also intends to launch an auction where creators can bid to receive even larger allocations.
Hyperliquid is considering letting market makers charge fees as high as 50% for trades on their platforms. The company emphasized this plan is still a draft and may be adjusted based on what users think.
This new proposal follows Hyperliquid’s launch of HIP-4 in May, which brought prediction markets to their fast blockchain. Hyperliquid reports that this feature saw around $100 million in trades within its first month.
Hyperliquid is getting more recognition in both the traditional and decentralized finance worlds. Recently, Bitwise included HYPE in its BITW ETF – a diversified crypto index fund – allocating approximately 0.95% of the fund to the token, putting it among other leading cryptocurrencies.
Bitwise’s latest data shows Hyperliquid reached $1.34 trillion in trading volume and $320 million in revenue between January and June of 2026, leading to its inclusion in the index.
2026-07-20 09:59