Hyperliquid plans to introduce decentralized prediction markets in HIP-4 upgrade
Abstract:Hyperliquid's HIP-4 upgrade introduced “outcome trading” to its decentralized exchange, with plans to later enable permissionless deployment of prediction market contracts. Currently, validators retain authority over the markets, but once the enhancement is live, anyone can offer contracts based on approved templates. Prediction markets, dominated by Polymarket and Kalshi, have grown into a multibillion-dollar sector where users bet on events like central bank decisions or the Super Bowl halftime show. The FIFA World Cup final, won by Spain, attracted over $50 billion in bets, fueling interest from centralized platforms like Coinbase and Robinhood.
Hyperliquid said its HIP-4 upgrade, which introduced “outcome trading” to the decentralized exchange, will support permissionless deployment of the contracts in a future enhancement.
Once live, anyone will be able to offer a prediction market on the platform, subject to templates approved by validators, Hyperliquid said on Telegram on Sunday. In the meantime, they remain under the authority of validators.
Prediction markets, a sector dominated by Polymarket and Kalshi, allow participants to bet on event outcomes and have evolved into a multibillion-dollar sector of the blockchain industry. Users take positions on events from central bank interest-rate decisions to who performs at the Super Bowl halftime show.
The growing popularity of the platforms — the FIFA World Cup, which wrapped up Sunday with Spain winning its third title, drew more than $50 billion in bets — has attracted centralized trading platforms like Coinbase and Robinhood into the sector to offer customers a one-stop shop for predictions markets alongside more conventional financial trading.
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