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Hyperliquid to add permissionless prediction markets in HIP-4 upgrade
Hyperliquid says the feature will debut on testnet before mainnet, with deployers required to stake 500,000 HYPE tokens and earn up to 50% of trading-fee revenue.
Hyperliquid said a forthcoming enhancement to its HIP-4 upgrade will enable permissionless deployment of prediction markets on its decentralized exchange, moving beyond the current validator-controlled model, according to CoinDesk. Prediction markets will initially remain under validator authority, but the platform plans to shift to a system where deployers can offer markets subject to approved templates voted on by validators.
CoinDesk reports that Hyperliquid’s HIP-4 upgrade, which introduced outcome trading, will be the base for supporting permissionless prediction-market contracts later on. The outlet also noted that once permissionless markets go live, validator-controlled markets are expected to remain available but be rare.
Hyperliquid said permissionless prediction markets will roll out first on testnet and later on mainnet, and deployers will need to stake 500,000 HYPE tokens, which can be slashed if validator voting determines a market is poorly defined or settles incorrectly, CoinDesk reported. The platform added that deployers can earn up to 50% of trading fees revenue.
CoinDesk added that its native HYPE token rose 1% after the announcement, moving from an intraday low of $59.88 to just over $60.50, and was last trading around $60.79. Hyperliquid said it hopes validator-controlled prediction markets will be fewer than 10 per year once the permissionless feature is live.