Hyperliquid Expands Into Permissionless Prediction Markets With HIP-4 Upgrade

Key highlights:

  • Developers will soon be able to launch prediction markets on Hyperliquid thanks to its HIP-4 upgrade
  • They must stake at least 500,000 HYPE tokens to create the markets
  • Market creators could earn up to 50% of whatever trading fees the prediction market generates
  • This could help reduce HYPE’s circulating supply

Hyperliquid has shared plans to bring permissionless prediction markets through its upcoming HIP-4 upgrade. The new feature will allow developers to launch their own prediction markets without needing approval.

This could open the door to thousands of new markets covering everything from politics to sports to economic events and entertainment. It may also help increase demand for the HYPE token, which has stayed stable over the past months.

Hyperliquid brings prediction markets to more developers

According to a Telegram post, the platform plans to make HIP-4 Outcome Markets permissionless. This basically means anyone will be able to launch prediction markets on the network once the feature goes live.

This will begin on the testnet before expanding to the mainnet. Hyperliquid shared that prediction markets have far more growth potential than normal crypto trading products. 

Notably, validators will first have to approve standardized templates. Developers can then use those templates to launch new markets without having to wait for additional approvals each time.

This continues a broader trend seen across the markets. Platforms like Polymarket and Kalshi have gained attention by allowing users to speculate on election outcomes, sports events, economic data releases, among others.

Developers must lock 500,000 HYPE tokens

To launch a HIP-4 prediction market, developers must stake 500,000 HYPE tokens. Those tokens will remain locked for six months.

The stake protects users. Validators can vote to slash part of the staked tokens if a market is unresolved for over a week, 

“The staking requirement for HIP-4 deployers will be 500k HYPE,” the team noted. “ The staking requirement is subject to slashing by validator vote in case markets are poorly defined, settled incorrectly according to the template.”

Developers must also settle all active markets before they can get their stake back. Each deployer will be able to create up to 100 outcomes, equal to 200 outcome tokens. The protocol said future upgrades could expand those limits.

There are also rewards for developers. Hyperliquid plans to let deployers earn up to 50% of the trading fees generated by their markets. This should encourage more builders to create new prediction products on the network.

Only AQAv2 quote tokens will be supported at launch.  Later on,  additional features such as fee customization would be added.

What could this mean for HYPE?

The upgrade could be really great for the HYPE token itself. Market creators having to lock 500,000 HYPE tokens could create some sense of scarcity for the coin. 

This means there would be fewer tokens in circulation as more developers participate. A reduced supply of coins attracts more traders into investing.

The announcement comes just a week after Hyperliquid reached a new all-time high of over $3.6 billion in real-world assets (RWA) open interest.

As of press time, the HYPE token price is trading at around $60.94, down 5% in the past week.

 

Source:: Hyperliquid Expands Into Permissionless Prediction Markets With HIP-4 Upgrade

Updated: July 20, 2026 at 3:24 pm
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