Hyperliquid is bringing permissionless prediction markets to its network. Under the upcoming HIP-4 upgrade, anyone can launch markets by staking 500,000 HYPE, creating new opportunities for developers.
Meanwhile, this will potentially increase demand for the Hype token, as it is now trading around $60.6.
Hyperliquid Opens Prediction Markets to Everyone
In a recent telegram post, Hyperliquid has announced that its upcoming HIP-4 Outcome Markets will support permissionless deployment, allowing anyone to launch prediction markets without needing approval from the protocol.
The feature will first go live on the testnet before moving to the mainnet.
According to Hyperliquid, permissionless deployment is important because the number of real world events suitable for prediction markets is far larger than the number of assets available for spot or perpetual trading.
To maintain quality, validators will first approve standardized market templates. Developers can then use these templates to launch their own prediction markets without waiting for validator approval every time.
Developers Must Stake 500K HYPE to Launch Markets
To launch a HIP-4 market, developers must stake 500,000 HYPE, which will remain locked for six months.
The stake can be slashed if markets are poorly defined, settled incorrectly, or remain unresolved for more than one week. Developers must also settle all active markets before they can withdraw their stake.
Initially, every deployer can create up to 100 outcomes (200 outcome tokens), with future upgrades expected to increase this limit through an auction system.
Hyperliquid also plans to let deployers earn up to 50% of trading fees generated by their prediction markets, creating a financial incentive to build new markets on the network.
The protocol added that only AQAv2 quote tokens will be supported at launch, while some features, including fee customization, will be introduced in later upgrades.
How This New Protocol Will Impact HYPE Price
The upgrade will affect HYPE’s market supply and, indirectly, will push the hype token price. Since every deployer must lock 500,000 HYPE, more tokens could gradually move out of circulation as new prediction markets launch.
The announcement also comes after Hyperliquid crossed $1 billion in protocol revenue, with 97% to 99% of protocol fees automatically used to buy back HYPE through its Assistance Fund.
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