Hassan Maishera
TL;DR
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Hyperliquid plans to introduce permissionless prediction markets through a future enhancement to its HIP-4 upgrade.
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Anyone will be able to deploy prediction markets using validator-approved templates, with testing beginning on the platform's testnet.
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Market creators must stake 500,000 HYPE tokens, which can be slashed for poorly designed or incorrectly settled markets.
Hyperliquid is preparing to expand its decentralized exchange by allowing users to launch their own prediction markets through a future enhancement to its HIP-4 protocol upgrade.
The move will bring permissionless "outcome trading" to the platform, enabling anyone to create prediction market contracts using standardized templates approved by network validators.
Anyone Can Create Prediction Markets
Hyperliquid announced on Telegram that future versions of HIP-4 will remove the current validator-controlled deployment model for outcome trading.
Once the feature is introduced, users will be able to launch prediction markets without seeking direct approval, provided they use templates accepted by validators.
Until then, outcome trading contracts will continue to be created and managed by validators.
The company said permissionless markets will first be introduced on the testnet before expanding to the mainnet.
HIP-4 was activated on Hyperliquid's mainnet in May, introducing outcome trading to the decentralized exchange.
Although validator-managed prediction markets will continue to exist after permissionless deployment launches, Hyperliquid expects them to become increasingly rare.
According to the project, it ideally expects fewer than 10 validator-controlled markets each year, with most new markets being created directly by community members.
Deployers Must Stake HYPE Tokens
To launch a prediction market, deployers will be required to stake 500,000 HYPE tokens.
The stake serves as an economic safeguard for the network. Validators will have the authority to slash the deposit if they determine that a market was poorly defined or settled incorrectly.
Hyperliquid also plans to reward deployers by allowing them to earn up to 50% of the trading fee revenue generated by their prediction markets, creating a financial incentive for launching high-quality contracts.
Prediction markets have become one of the fastest-growing segments of the digital asset industry, with platforms such as Polymarket and Kalshi attracting billions of dollars in trading activity.
The markets allow users to speculate on the outcomes of real-world events, ranging from elections and central bank interest rate decisions to sporting events and entertainment.
The sector's rapid growth has also drawn major centralized trading platforms into the space, with companies including Coinbase and Robinhood introducing prediction market offerings alongside traditional financial products.
Hyperliquid's native HYPE token reacted positively to the announcement. The token gained roughly 3.2% in the hours after the update, rebounding from an intraday low of $59.88 to trade above $60.50 before changing hands at around $62.43.
The planned rollout of permissionless prediction markets marks another step in Hyperliquid's effort to expand beyond perpetual futures trading and build a broader decentralized financial ecosystem.
