TLDR
- Hyperliquid’s HIP-4 upgrade will support permissionless deployment of outcome markets after an initial testnet launch.
- Validators will approve standardized market templates, while eligible deployers will create and settle markets under those rules.
- HIP-4 deployers must lock 500,000 HYPE for six months before launching outcome markets.
- Validators may slash stakes for unclear market definitions, incorrect settlements, or delays exceeding one week.
- Each deployer will initially receive capacity for 100 outcomes, equal to 200 outcome tokens.
- Future updates may introduce capacity auctions and fee sharing of up to 50% for market deployers.
Hyperliquid will use its planned HIP-4 upgrade to permit open deployment of prediction markets across its network. The change will let qualified participants create outcome markets through validator-approved templates. Hyperliquid plans to launch the feature on testnet before considering a mainnet release.
HIP-4 Opens Outcome Market Deployment
Validators currently control outcome market deployment, but HIP-4 will transfer broader access to eligible market creators. Hyperliquid validators will vote on standard templates covering events with strong liquidity, clear terms, and sufficient user demand. Approved templates will remain stored and enforced on-chain.
Deployers will define and settle each market under the selected template. Different deployers may also launch identical markets when they follow the same approved framework. Hyperliquid will retain validator-created canonical markets, although the protocol expects fewer than ten such markets annually.
The system aims to separate template approval from individual market operation. Validators will govern the available structures, while deployers will manage event terms and settlement. This model expands access without removing network-level controls over market design.
Staking Rules Add Accountability
Each HIP-4 deployer must lock 500,000 HYPE for six months before creating markets. Validators may slash that stake when a deployer defines markets poorly or settles them incorrectly. Hyperliquid also requires deployers to settle every active market before withdrawing their stake.
A market left unsettled for more than one week may trigger a penalty. The rule gives validators a direct enforcement tool when deployers fail to complete settlement duties. It also links market access to financial responsibility under approved templates.
Each deployer will initially receive capacity for 100 outcomes, equal to 200 outcome tokens. Hyperliquid plans to distribute more capacity through an auction mechanism in a later update. The first version will support only AQAv2 quote tokens.
Fees and Testnet Rollout Remain Pending
The protocol plans to let deployers share up to 50% of market fees. However, configurable fee settings will arrive through a separate network update. Hyperliquid has not provided a date for that additional feature.
The team said the current specifications could change after community and validator feedback. “All specifications described above are preliminary and subject to change based on feedback,” the announcement stated. Users will receive further notice when testnet deployment begins, and documentation changes appear.
The announcement arrived as prediction market activity reached new quarterly records. CoinGecko reported $50.7 billion in June notional volume and $113.8 billion during the second quarter. Hyperliquid presented HIP-4 as an infrastructure change for broader outcome market deployment.
HYPE traded near $60 after the announcement, with losses across several recent periods. The token remained about 34% higher year-on-year but stayed below its recent record. Hyperliquid will next test HIP-4 before deciding when permissionless outcome markets can reach mainnet.
