Hyperliquid has announced plans to introduce permissionless deployment for its HIP-4 outcome markets, a move designed to scale the rapidly growing prediction market feature by allowing anyone to create new markets under standardized rules. The feature will be rolled out first on testnet, followed by a mainnet launch after community feedback and validator approvals.
According to a Sunday Telegram announcement from Hyperliquid, the upgrade addresses the sheer breadth of possible tradeable outcomes, which makes it impractical for validators to manually curate every market. Instead, validators will vote on standardized outcome templates that define each market's structure. These templates will be stored and enforced onchain, giving deployers a framework to instantiate approved formats without needing validator sign-off for every new listing.
Deployers will bear responsibility for defining and settling individual markets in line with the template criteria. Validator-created “canonical markets” will still exist but are expected to be rare—fewer than 10 outcomes or questions per year—determined by validator vote.
To participate, HIP-4 deployers must stake 500,000 HYPE. Validators can partially or fully slash this stake if a market is poorly defined, settled incorrectly, or left unresolved for more than one week. As with HIP-3, the stake is locked for six months, and deployers must settle all outstanding markets before unstaking. Each deployer initially receives an allocation for 100 outcomes (or 200 outcome tokens). Multi-outcome questions consume more slots, but settled outcomes free up allocation for reuse. An auction mechanism to increase allocations is planned for the future.
Market creators can charge fees of up to 50% on their markets. All details remain preliminary and may change based on community input.
HIP-4 launched in May, bringing prediction markets to Hyperliquid’s high-performance blockchain and generating roughly $100 million in trading volume in its first month. The permissionless deployment upgrade is the next step in expanding that ecosystem. In a related development, Bitwise recently added HYPE to its Bitwise 10 Crypto Index ETF with a ~0.95% allocation, underscoring Hyperliquid’s growing traction.
