Hyperliquid plans to permit exterior operators to create prediction markets on its blockchain, widening its problem to Polymarket whereas requiring potential deployers to place almost $32 million of its native token in danger.
The proposed HIP-4 improve would require every deployer to stake 500,000 HYPE, value about $31.7 million at Monday’s token value. Hyperliquid would initially introduce the system on testnet earlier than extending it to the principle community, the platform stated on July 19.
The change would give builders management over which particular person questions they record and the way these markets are settled.
Hyperliquid’s validators would retain authority over the broader guidelines, together with the standardized templates deployers should use and penalties for markets which can be unclear, improperly resolved, or left unsettled.
The association seeks to deal with one among Hyperliquid’s largest disadvantages relative to Polymarket: the restricted variety of occasion contracts that its validators can create themselves. It additionally locations a excessive monetary threshold round a system designed to broaden market creation past the validator group.
Hyperliquid’s HIP-4 builds system for increasing prediction markets
HIP-4 has operated on Hyperliquid’s mainnet since Might 2, however its preliminary rollout has been restricted to a small group of validator-curated contracts.
The markets are built-in into HyperCore, the platform’s native buying and selling engine, permitting customers to commerce occasion outcomes utilizing the identical account they use for spot belongings and perpetual futures. Every contract is absolutely collateralized and settles at both 0 or 1, relying on whether or not the desired occasion happens.
The contracts don’t use leverage, limiting a dealer’s most loss to the quantity paid for the place. That construction additionally permits final result markets to sit down alongside Hyperliquid’s higher-risk derivatives merchandise with out introducing liquidations or margin calls.
The deliberate improve would give HIP-4 a repeatable course of for including contracts at a scale that validator-led deployment couldn’t simply help.
Validators would approve standardized templates governing particular market sorts, with the necessities saved and enforced on-chain. The templates would set up how questions should be constructed, which situations decide settlement, and what info can be utilized to resolve the consequence.
Deployers may then use an authorized template to introduce particular person contracts, set their exact phrases, and full settlement after the underlying occasion concludes.
That course of would permit related markets, resembling sports activities fixtures or scheduled financial releases, to be launched with out requiring a brand new validator vote for each query.
Hyperliquid expects direct validator deployments to proceed solely in restricted circumstances. The platform stated that, as soon as the brand new system is working, canonical markets would ideally account for fewer than 10 questions or outcomes every year.
Every deployer would initially obtain capability for 100 outcomes, represented by as much as 200 tradable final result tokens. Questions with a number of attainable outcomes would require a number of slots, whereas settled contracts would unencumber capability for future markets.
Hyperliquid plans so as to add an public sale mechanism for operators searching for bigger allocations. Deployers would additionally be capable to obtain a price share of as much as 50% from the markets they function, though the ultimate economics stay topic to group suggestions.
The required HYPE would stay locked for six months, and deployers must settle all excellent markets earlier than withdrawing their stake.
Validators may vote to grab half or all of it if an operator information an incorrect consequence, fails to resolve a contract inside one week, or launches a market whose phrases don’t help a transparent settlement.
These necessities would make deployment an ongoing working duty quite than a one-time itemizing determination. Builders would wish to handle market definitions, settlement knowledge, and unresolved disputes whereas preserving sufficient capability to proceed introducing new contracts.
HIP-3 offers Hyperliquid a blueprint
The transition towards permissionless prediction markets is a direct replication of the technique Hyperliquid utilized to scale its HIP-3 perpetual futures framework.
That system, which allows unbiased builders to record personalized by-product contracts, has reworked from a distinct segment product into the trade’s main quantity driver.
Knowledge from DeFiLlama reveals that builder-deployed contracts accounted for about 2% of Hyperliquid’s perpetual buying and selling quantity at first of 2026. Their share has since climbed towards half of day by day buying and selling quantity, exhibiting how quickly markets created by exterior groups have moved from the platform’s edge into its core enterprise.
Demand for these markets has pushed real-world asset exercise on Hyperliquid to new highs. The platform stated open curiosity in RWA-linked contracts reached a document $3.6 billion, whereas whole open curiosity climbed to a 2026 excessive of $11 billion.
TradeXYZ has led that enlargement with perpetual contracts linked to the Nasdaq-100 and corporations together with Nvidia and Tesla. The merchandise give merchants publicity to cost actions with out possession of the underlying shares.
Their attraction additionally rests on steady entry. In contrast to US-listed shares, the contracts stay tradable at night time and on weekends, permitting customers to reply to earnings, coverage bulletins, and geopolitical developments whereas conventional exchanges are closed.
HIP-3’s progress means that exterior operators can establish and serve markets that Hyperliquid’s validators would wrestle to construct on the identical tempo.
It has additionally created a community of builders, market makers, and buying and selling interfaces that would now apply the identical playbook to HIP-4, increasing the platform’s final result contracts past the restricted variety of validators that may deploy themselves.
Hyperliquid enters a prediction market dominated by bigger rivals
Whereas HIP-3 proved that exterior builders can redirect buying and selling exercise inside Hyperliquid, HIP-4 might want to appeal to customers in a market the place Polymarket and Kalshi have already got benefits in liquidity, distribution, and model recognition.
Over the previous yr, prediction markets have expanded past the election-driven buying and selling cycles that when outlined the sector. As of July 2026, decentralized venues had processed greater than $311 billion in cumulative quantity throughout greater than 1.65 billion transactions, drawing over 4 million customers.
Sports activities have change into an more and more necessary supply of that exercise. Prediction-market buying and selling in the course of the World Cup was equal to about 27% of authorized US sports-betting quantity, up from roughly 9% at first of the yr, estimates from H2 Playing Capital confirmed.
Institutional curiosity can be broadening the business’s potential use past shopper hypothesis.
Bernstein expects annual prediction-market quantity to rise from $51 billion in 2025 to about $1 trillion by 2030 as contracts tied to cryptocurrencies, financial indicators and company dangers change into extra extensively used for forecasting and hedging.
That progress has intensified competitors amongst platforms pursuing completely different routes into the market.
Polymarket has constructed a large catalog spanning politics, sports activities, digital belongings and cultural occasions, supported by an interface designed round discovering and evaluating questions. Kalshi has used its regulated US place to broaden sports activities buying and selling and deepen relationships with monetary establishments.
Hyperliquid is approaching the chance via its present base of energetic derivatives merchants. Reasonably than constructing and selling each market itself, the platform plans to supply the execution infrastructure whereas outdoors operators develop contracts, interfaces, and specialist audiences.
That mannequin may assist HIP-4 add outcomes sooner than a validator-led system. Nevertheless, it doesn’t take away the problem of persuading customers to depart established venues or attracting operators able to assembly the five hundred,000 HYPE staking requirement.
The breadth of accessible questions, the reliability of settlements, and the standard of consumer-facing discovery will decide whether or not HIP-4 develops into a 3rd main prediction-market venue.
With out these components, final result contracts may stay a further product for Hyperliquid’s present buying and selling base quite than a direct rival to Polymarket and Kalshi.
