Decentralized sustainable contract trading platform Hyperliquid accelerates its expansion into prediction markets, announcing it will further upgrade to HIP-4 so that anyone can deploy prediction-market derivative contracts on the platform, officially challenging the markets currently led by Polymarket and Kalshi.
Hyperliquid said via Telegram that with HIP-4’s “Outcome Trading” feature, in the future, anyone will be able to freely build prediction-market derivative contracts by using standardized templates approved through validated-voter voting. Until the new functionality is fully opened, existing prediction markets will still be created and managed by validators.
Prediction markets are becoming the new battleground, as Hyperliquid joins the competition
Prediction markets are one of the fastest-growing areas in the blockchain industry in recent years. They allow users to trade based on the outcomes of specific events—such as central bank interest rate decisions, presidential elections, and sports events—using market prices to reflect the probability of each event occurring.
Currently, the global prediction market is mainly dominated by Polymarket and Kalshi, and the market size has already surpassed several billions of dollars.
As demand grows rapidly, more and more major financial platforms are also joining the competition. The 2026 FIFA World Cup, just concluded this year, saw cumulative trading volumes in prediction markets break through $50 billion, attracting a string of centralized trading platforms—including Coinbase and Robinhood—to roll out offerings and provide one-stop trading services covering both prediction markets and traditional financial products.
Open prediction markets to anyone, but requires staking 500,000 HYPE
HIP-4 was officially deployed to the Hyperliquid mainnet in May this year, and the platform currently supports a “results trading” feature.
Hyperliquid says that in the future, it will first open permissionless prediction markets on the testnet to confirm stable operation, and then roll them out to the mainnet.
At that time, anyone will be able to deploy their own prediction market, but must first stake 500,000 HYPE tokens (Hyperliquid’s native token) as collateral.
If validators vote that the market definition is unclear, the rules have major flaws, or the final settlement result is incorrect, the staked assets could be reduced (Slashing, which means confiscating a portion of the staked assets as a penalty).
As a reward, developers who create prediction markets can earn up to 50% of trading fee revenue, encouraging the community to keep building more high-quality markets.
Hyperliquid says that after permissionless prediction markets are opened in the future, the official markets currently created by validators will continue to exist, but their number will be significantly reduced.
The official statement says that ideally, each year the number of markets created by validators will be fewer than 10, and most markets will be created and maintained by the community.
HYPE edges higher
After the news was released, the market response was largely positive. Hyperliquid’s native token HYPE rose by about 1% following the announcement, rebounding from an intraday low of $59.88 to above $60.5. Its latest quote is around $62.55, up 3.3% over the past 24 hours.
As prediction markets continue to become the new focal point in the crypto industry, Hyperliquid’s latest upgrade also means its business footprint is expanding beyond decentralized derivatives trading to prediction markets, directly competing with platforms such as Polymarket and Kalshi.
“Deployers get 50% of trading fees! Hyperliquid will open permissionless creation of prediction markets.” This article was originally published on (BlockNews).