Key Highlights
- Hyperliquid launched HIP-4, a protocol for outcome and prediction market trading.
- HIP-4 contracts are fully collateralized, dated, and trade without leverage or liquidations.
- Hyperliquid’s token HYPE jumped over 8% after the announcement, reaching around $32.29.
Hyperliquid, a decentralized exchange, announced the launch of HIP-4, a new protocol that will allow outcome trading on its platform. The feature will let users trade prediction markets and options-like contracts that are fully collateralized and settle within a fixed range.
HyperCore, Hyperliquid’s main trading engine, will support this new mode to expand activity and offer more trading options. The platform plans to offer a safer option for users who want to avoid risky leverage trading.
The launch is currently in the testnet stage, and live markets will come after testing is done. Additionally, HIP-4 will initially use USDH, Hyperliquid’s native stablecoin, to settle trades. Later, it will allow users to freely create new trading pairs without restrictions.
Details of the HIP-4 contracts
The new contracts in HIP-4 will be dated and allow derivative trading without leverage or liquidations. This design makes it less risky than traditional margin trading markets. The outcome contracts are general-purpose primitives, meaning developers can build prediction markets or other options-like instruments on top of HyperCore.
Hyperliquid plans to offer permissionless deployment at the end stage, allowing new outcome pairs to be created freely by users.
HIP-4 comes after the success of HIP-3, which allowed the quick creation of markets like silver and gold trading on-chain. HIP-3 became highly active in just days and showed that the platform can support fast-growing markets.
HYPE token up 8% in 24 hours
Hyperliquid’s native token, HYPE, was quick to react to the announcement. At the time of writing, the token is trading for $32.29, up 8% in the last 24 hours. In the past week, the token has gained more than 35%, despite the recent overall market crash.
The recent update would likely increase adoption by attracting both leveraged and non-leveraged traders. The platform has already grown in market depth and even competes with Binance in trading volumes, though recent BTC open interest fell to $1.77 billion, with $4.97 billion in total open interest.
Even after recent market losses, HIP-3 still has more than $1 billion in open interest and $4.8 billion in trading activity.
Hyperliquid is positioning HIP-4 to capture attention in the prediction markets space, which is currently active on other networks. Once the testing phase is complete, the platform will use objective settlement sources to ensure transparent and reliable outcomes.
Also Read: Hyperliquid Slashes Team Payouts 98% to Protect HYPE Floor
