Crypto Reporter
Shalini Nagarajan
Crypto Reporter
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Hyperliquid is laying the groundwork to enter prediction markets, pitching a new product called outcome trading that it says could open the door to event-based contracts without the leverage and liquidation mechanics that dominate crypto derivatives.
In an X post on Monday, Hyperliquid said its core engine HyperCore will support outcome trading under a proposal known as HIP-4, framing outcomes as fully collateralized contracts that settle within a fixed range and can power prediction markets as well as bounded options-style trades.
Hyperliquid said outcomes aim to add non-linearity and dated contracts while offering a form of derivatives trading that does not rely on leverage or liquidations.
Testnet Phase Sets Stage For Broader Deployment
It also positioned the feature as a building block that can work alongside portfolio margin and HyperEVM, signalling a push to widen what developers can build on top of its stack.
For now, the company said the feature remains in testnet, with canonical markets planned after technical work wraps up.
Hyperliquid added that those initial markets will rely on objective settlement sources, be denominated in USDH, and may later expand to permissionless deployment depending on user feedback.
CFTC Signals Fresh Framework For Prediction Markets
The timing matters because prediction markets are moving from the fringe to the regulatory agenda. Commodity Futures Trading Commission chairman Michael Selig said last week the agency is preparing a new rulebook for prediction markets, as platforms such as Polymarket and Kalshi draw billions in activity by letting users trade yes or no outcomes across politics, pop culture, and more.
That regulatory shift is already reshaping the competitive landscape. Polymarket has re-entered the US market after receiving approval from the CFTC through an Amended Order of Designation, a move that could make event contracts a new engagement tool for major crypto platforms such as Coinbase, according to a Clear Street report by analyst Owen Lau.
Polymarket, which had been restricted from serving US customers since 2022, has launched a US-based application that starts with a limited set of sports-focused event contracts, with categories such as politics and crypto expected to follow over time.
Hyperliquid’s proposal reads as an attempt to meet that moment with infrastructure first, aiming to give traders and builders a simpler, fully collateralized way to express views on outcomes while regulators and platforms spar over where prediction markets fit inside existing rules.
If HIP-4 moves from testnet to production, it would place Hyperliquid more directly in the widening race to package prediction markets as a mainstream crypto product, just as policy scrutiny and consumer demand start pulling the space in the same direction.
