Hyperliquid is launching open prediction markets with its HIP-4 update, allowing permissionless contract deployment for traders.
Hyperliquid, a decentralized exchange specializing in perpetual contracts, is set to roll out open prediction markets as part of its latest update, HIP-4.
The development team emphasized that allowing permissionless contract deployment is crucial for expanding the prediction market sector, which offers a wide range of potential outcomes for trading.
Before the feature goes live, it will be tested in a validator-managed environment. Following the update, deployers will be able to create markets using standardized templates stored on-chain, ensuring clarity and sufficient liquidity for events.
To initiate markets under HIP-4, deployers must lock 500,000 HYPE tokens as collateral. Validators will have the authority to withdraw this collateral if there are issues with market descriptions or contract execution.
Initially, each deployer will be allocated 100 outcomes, or 200 outcome tokens, with plans to implement an auction mechanism to raise this limit in the future. Market fees could go as high as 50%, though these parameters may be adjusted based on community feedback. Users will still have the option to launch canonical markets directly through Hyperliquid.
Since its launch in May, HIP-4 has facilitated around $272 million in transactions. As of June, Hyperliquid's open interest exceeded $10 billion, positioning it as the third-largest platform for perpetual futures trading.
