Hyperliquid Moves Toward Prediction Markets With New Proposal
Hyperliquid is laying the groundwork to enter prediction markets, pitching a brand new product known as end result buying and selling that it says might open the door to event-based contracts with out the leverage and liquidation mechanics that dominate crypto derivatives.
In an X post on Monday, Hyperliquid mentioned its core engine HyperCore will assist end result buying and selling underneath a proposal often known as HIP-4, framing outcomes as totally collateralized contracts that settle inside a hard and fast vary and might energy prediction markets in addition to bounded options-style trades.
Hyperliquid mentioned outcomes intention so as to add non-linearity and dated contracts whereas providing a type of derivatives buying and selling that doesn’t depend on leverage or liquidations.
Testnet Phase Sets Stage For Broader Deployment
It additionally positioned the function as a constructing block that may work alongside portfolio margin and HyperEVM, signalling a push to widen what builders can construct on prime of its stack.
For now, the corporate mentioned the function stays in testnet, with canonical markets deliberate after technical work wraps up.
Hyperliquid added that these preliminary markets will depend on goal settlement sources, be denominated in USDH, and should later broaden to permissionless deployment relying on person suggestions.
CFTC Signals Fresh Framework For Prediction Markets
The timing issues as a result of prediction markets are transferring from the perimeter 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 similar to Polymarket and Kalshi draw billions in exercise by letting customers commerce sure or no outcomes throughout politics, popular culture, and extra.
That regulatory shift is already reshaping the aggressive panorama. Polymarket has re-entered the US market after receiving approval from the CFTC by means of an Amended Order of Designation, a transfer that might make occasion contracts a brand new engagement software for main crypto platforms similar to Coinbase, in response to a Clear Street report by analyst Owen Lau.
Polymarket, which had been restricted from serving US prospects since 2022, has launched a US-based software that begins with a restricted set of sports-focused occasion contracts, with classes similar to politics and crypto anticipated to observe over time.
Hyperliquid’s proposal reads as an try to satisfy that second with infrastructure first, aiming to present merchants and builders an easier, totally collateralized option to specific views on outcomes whereas regulators and platforms spar over the place prediction markets match inside present guidelines.
If HIP-4 strikes from testnet to manufacturing, it will place Hyperliquid extra straight within the widening race to package deal prediction markets as a mainstream crypto product, simply as coverage scrutiny and shopper demand begin pulling the house in the identical path.
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