Hyperliquid plans to add decentralized prediction markets in upgrade to HIP-4
CoinDesk 2026-07-20 10:04:25
Context: Hyperliquid, a decentralized exchange, plans to enhance its recent HIP-4 upgrade with a new feature that will allow permissionless deployment of prediction markets, enabling anyone to offer a prediction market on the platform subject to approved templates voted on by validators. This upgrade is set to expand the platform's capabilities in the multibillion-dollar prediction market sector, which has attracted major players like Coinbase and Robinhood. The HIP-4 upgrade initially introduced "outcome trading" to the decentralized exchange and went live on the mainnet in May.
Key Facts
- Hyperliquid's HIP-4 upgrade will support permissionless deployment of prediction market contracts in a future enhancement, allowing anyone to offer a prediction market on the platform subject to templates approved by validators.
- Prediction markets on Hyperliquid will be available first on testnet and later on mainnet, with deployers required to stake 500,000 HYPE tokens that can be slashed if a validator vote determines the prediction market to be poorly defined or settled incorrectly.
- Deployers of permissionless prediction markets on Hyperliquid will earn up to 50% of the revenue from trading fees, providing a potential source of income for market creators.
- The prediction market sector, dominated by Polymarket and Kalshi, has evolved into a multibillion-dollar sector of the blockchain industry, with the recent FIFA World Cup drawing more than $50 billion in bets.
- Hyperliquid's native HYPE token rose 1% in the hours following the announcement, lifting from an intraday low of $59.88 to just over $60.50, and was trading recently at $60.79.