Hyperliquid announced this Sunday (19) the HIP-4 update, a proposal that will allow the creation of permissionless prediction markets. The new feature will first be launched on the testnet and, later, will arrive on the main network, expanding access for users interested in developing outcome markets within the protocol.
With the update, validators will continue approving standardized settlement templates, but any participant that meets the HIP-4 requirements may use them to create new markets. The templates will be recorded on the blockchain and must represent events with clear rules, good liquidity, and user interest.
Responsibility for defining and settling the markets will lie with the implementers themselves. The protocol will also allow different participants to create identical markets using the same approved template. Meanwhile, the canonical markets launched by validators will continue to exist, but the expectation is that they will be used only in specific cases.
To become an implementer, it will be necessary to lock 500.000 HYPE tokens for six months. This staking may be subject to penalties if a market is poorly defined, settled incorrectly, or remains unsettled for more than one week. In addition, the participant will only be able to withdraw the funds after completing the settlement of all markets under their responsibility.
In the initial phase, each platform may host up to 100 outcomes, equivalent to 200 outcome tokens. Hyperliquid also said it intends to expand this limit in the future through an auction mechanism. The protocol added that platforms may share up to 50% of market fees in future updates. In this version of HIP-4, only AQAv2 quote tokens will be compatible.
“All specifications described above are preliminary and subject to change based on feedback,” the team clarified, adding that users will be informed as soon as the feature is made available on testnet and the documentation is updated.
Despite the news, the HYPE token remained under pressure. At the time of publication, it was trading near US$ 60, posting a decline of approximately 1% over the last 24 hours and almost 10% over the last seven days. Even so, the asset remains about 34% above the level recorded a year ago, although it is still more than 21% below the all-time high of US$ 76,87.
The update comes amid the growth of prediction markets. In the second quarter of 2026, the segment handled US$ 113,8 billion in notional volume, up 48,7% from the previous quarter, driven by major sporting events and increased demand for decentralized prediction platforms.