Hyperliquid launches HIP-4 to expand into outcome and prediction trading

Hyperliquid introduced HIP-4, a new platform for outcome trading. With this addition, HyperCore will support another trading mode, expanding overall activity. 

HyperCore will introduce HIP-4, enabling outcome trading. With this move, Hyperliquid will become a platform for options and predictions, building a new market beyond perpetual futures trading. 

Outcomes will be fully collateralized and will settle within a fixed range, remaining less risky compared to perpetual futures leveraged trading. The platform will offer general-purpose primitives, which will be available for apps to create new prediction markets and options instruments, announced the Hyperliquid team.

HIP-4 introduces third-party outcome markets

HIP-4 will become another builder-driven platform, seeking novel applications for HyprCore’s trading technology. The previous performance of HIP-3 has shown that builders can react within days, tapping highly active markets. HIP-3 only took days to offer silver and gold trading, becoming one of the most liquid markets for on-chain metal contracts. 

HIP-4 will bring dated contracts, as well as derivative trading without leverage or liquidations, unlike the other margin trading markets. 

The outcomes technology is still in the testnet stage, and the live markets will be deployed after testing is completed. Hyperliquid will settle the outcome markets in its native stablecoin, USDH. Native Markets, the issuer of USDH, announces the usage of the native stablecoin.

At the end stage, the platform will allow permissionless deployment for new outcome pairs. 

With this move, HyperEVM will become the next chain to host a potentially lively prediction market. This time, Hyperliquid is behind the trend, while other networks already host some of the leading prediction markets. 

Is crypto activity shifting to Hyperliquid?

Hyperliquid built up significant market depth and even became a competitor to Binance’s trading volumes. The biggest problem for the platform is liquidations, which erase open interest. 

Following the latest market downturn, as of February 2, Hyperliquid carried just $1.77B in BTC open interest and $4.97B in total open interest. Despite the outflows, HIP-3 continued growing, with over $1B in open interest and $4.8B in trading activity. 

Hyperliquid may be preferable due to its transparent markets and fewer signs of deliberate manipulation. The markets have inherent volatility and are affected by whales, but some pairs have built robust liquidity.

Jeff Yan, CEO and co-founder of Hyperliquid, noted the platform must remain neutral. 

‘The house of all finance must be credibly neutral. This means no private investors, no market maker deals, and no protocol fees to any company,’ wrote Yan in a recent post.

The shift to Hyperliquid happens as Binance and Wintermute had to defend themselves against accusations of orchestrating the October 11 market crash. 

Following the recent market activity, HYPE retained its recent gains, trading near its one-week highs of $32.12. $18.65M were poured into HYPE buybacks in the past week, for an average buyback price of $28.50.

If you're reading this, you’re already ahead. Stay there with our newsletter.