Hyperliquid plans permissionless prediction markets through HIP-4

Hyperliquid plans to open its HIP-4 outcome market infrastructure to permissionless deployments, allowing outside builders to create prediction markets under a validator governed framework, the company announced on its Telegram channel.

The feature will launch first on testnet before expanding to mainnet. HIP-4 outcome markets went live on mainnet in May, but deployments are currently controlled by Hyperliquid validators.

The planned upgrade will shift most market creation to third party deployers while validators retain control over the templates that determine which types of outcomes can be listed.

Deployers will be required to stake 500,000 HYPE. At the current HYPE price of about $62.25, the requirement represents roughly $31.1 million, creating a substantial capital barrier for builders seeking to operate markets.

The stake will remain locked for six months and may be slashed through a validator vote if a deployer creates poorly defined markets, settles an outcome incorrectly or leaves a market incorrectly unsettled for more than one week.

Builders must settle every outstanding market before withdrawing their stake. The requirement is designed to make deployers financially responsible for the accuracy and clarity of the markets they operate.

Hyperliquid validators will approve standardized outcome templates whose specifications will be stored and enforced onchain. Deployers will then be able to create individual markets based on those templates and will remain responsible for defining their settlement conditions and resolving them correctly.

The structure introduces permissionless market creation without giving deployers complete control over which categories of questions can be offered. Hyperliquid said validator approved templates will be limited to outcomes with sufficient liquidity and public interest and must be clearly defined and unambiguous.

Each deployer will initially receive capacity for 100 outcomes, equal to 200 outcome tokens. Settled outcomes will free their allocation for reuse, while a future auction mechanism will allow builders to expand their capacity.

Deployers will eventually be able to receive as much as 50% of trading fees generated by their markets. Hyperliquid said configurable fee sharing will arrive in a later upgrade. Only assets that meet its AQAv2 aligned quote asset standard will be eligible to serve as collateral.

Validator deployed markets will continue to exist but are expected to become rare. Hyperliquid said the network should ideally create fewer than 10 canonical outcomes each year, leaving third party builders responsible for most of the platform’s future market expansion.

Disclosure: This article was edited by Estefano Gomez. For more information on how we create and review content, see our Editorial Policy.