Anyone staking 500,000 HYPE tokens can now build prediction markets on Hyperliquid, as the platform launches the permissionless phase of its HIP-4 upgrade. This shift moves market deployment from a curated model to an open system, starting on testnet before mainnet rollout.

Transition to Permissionless Market Deployment

Hyperliquid’s initial HIP-4 phase allowed only approved markets, including a daily Bitcoin binary market by Outcomexyz. With the new update, builders who stake the required HYPE amount deploy event contracts without needing approval. These contracts run alongside Hyperliquid’s decentralized exchange in a shared slot, leveraging its existing liquidity pools instead of starting with empty order books.

The stake is subject to slashing and burning if validators detect attempts to manipulate or produce invalid settlements. This mechanism encourages honest behavior and integrity in market creation.

Onchain Settlement Through Validators

Settlement of prediction markets occurs onchain via a set of Hyperliquid validators, bypassing the need for token holder votes or community disputes. Unlike platforms like Polymarket, which use UMA’s optimistic oracle and have faced notable contested resolutions, Hyperliquid aims to prevent similar blowups by having validators publish definitive outcomes that settle contracts directly to 0 or 1.

This model contrasts with Kalshi’s centralized approach regulated by the CFTC and eliminates layers that have caused costly conflicts in decentralized prediction markets.

Trading and Fee Structure

Traders can manage both perpetual contracts and event-based contracts within a single margin account. Builders running markets earn up to half the trading fees generated, while Hyperliquid provides the underlying matching engine and liquidity. Permissionless outcome markets are rolling out first on testnet, indicating a careful approach before full mainnet deployment.

This update broadens participation in market creation while maintaining network security through staked penalties. It follows prior announcements about open HIP-4 deployment on testnet.

This content is for informational purposes only and does not constitute financial advice.