Hyperliquid plans permissionless HIP 4 prediction market deployment

Hyperliquid has announced plans to introduce permissionless deployment for HIP-4 outcome markets, with the feature set to roll out on testnet before a later mainnet release.

Hyperliquid said in a Sunday Telegram announcement that the upgrade is intended to support the expansion of outcome markets, where the number of possible tradeable events is too large for validators alone to manage.

Under the proposed system, validators will vote on standardized outcome templates that define how markets should be structured. Those templates will be stored and enforced onchain, allowing anyone to deploy new markets using approved formats instead of requiring validator approval for every listing.

Once a template is approved, deployers will create individual markets and will be responsible for defining and settling them according to the template’s rules. Hyperliquid said validator-created “canonical markets” will continue to exist but are expected to remain rare, with fewer than 10 such outcomes or questions deployed each year through validator votes.

Deployers face staking and settlement requirements

To participate, HIP-4 deployers will need to stake 500,000 HYPE. Hyperliquid said validators can partially or fully slash that stake if markets are poorly defined, are settled incorrectly, or remain unresolved for more than one week.

Similar to the network’s HIP-3 framework, the stake will remain locked for six months, and deployers must settle every outstanding market before they can withdraw it.

Each deployer will initially receive capacity for 100 outcomes, equivalent to 200 outcome tokens. Multi-outcome markets will use more of that allocation, while settled markets will release capacity for future deployments. Hyperliquid also said it plans to introduce an auction system that will allow deployers to increase their allocation.

Market creators will be allowed to charge fees of up to 50% on their own markets. Hyperliquid noted that the proposal remains preliminary and could change after community feedback.

The latest proposal builds on Hyperliquid’s rollout of HIP-4 in May, when the network introduced prediction markets to its high-performance blockchain. According to Hyperliquid, the feature generated roughly $100 million in trading volume during its first month.

The update comes as Hyperliquid continues to gain attention across both decentralized and traditional finance. Earlier this month, Bitwise added HYPE to its Bitwise 10 Crypto Index ETF (BITW) with an allocation of about 0.95%, placing the token alongside the largest crypto assets in a diversified index fund. 

The inclusion followed Hyperliquid’s reported $1.34 trillion in trading volume and $320 million in revenue during the first half of 2026, according to Bitwise’s latest index update and previous reporting.