Hyperliquid to Open Prediction Markets to Permissionless Deployment via HIP-4 Upgrade

Hyperliquid announced on July 20 a future network upgrade that will allow qualified users to launch prediction markets on its decentralized exchange, expanding its HIP-4 Outcome Markets beyond validator-only creation. The permissionless feature will first launch on testnet before mainnet deployment. Deployers must stake 500,000 HYPE tokens for six months, with validators retaining slashing authority for violations like ambiguous outcomes or incorrect settlement. Markets will use validator-approved templates enforced on-chain. Deployers can earn up to 50% of trading fees in future versions. Initially, each deployer gets an allocation for 100 outcomes (200 tokens), with an auction mechanism planned for quota expansion. HIP-4 markets support only AQAv2 quote assets settled via stablecoins; Coinbase registered USDC under the program in June, potentially replacing USDH as default settlement. HYPE futures open interest recently approached $2.6 billion, with monthly trading volume of $266 billion in June (up 34% from May). Following the announcement, HYPE briefly rose from $59.88 to $60.50 before settling near $61.13, up 138% year-to-date. The upgrade positions Hyperliquid to compete with Polymarket and Kalshi in the prediction market sector, which has attracted Coinbase and Robinhood.