Hyperliquid Unveils Event Trading With HIP-4 as HYPE Token Rallies

Hyperliquid has launched a brand new derivatives primitive that might change how prediction markets and non-linear contracts are constructed on-chain. The decentralized change (DEX) introduced that HyperCore will help end result buying and selling below the HIP-4 proposal. The announcement got here as Hyperliquid’s native token, $HYPE, recorded sharp good points alongside a surge in buying and selling exercise.

Under HIP-4, HyperCore will help “outcomes” as “absolutely collateralized contracts that settle inside a hard and fast vary.” Unlike leveraged perpetuals or choices that depend on liquidations, outcomes are designed to be nonlinear devices that cap danger by building.

Hyperliquid describes the outcomes product as “a general-purpose primitive which might be helpful for purposes such as prediction markets and bounded options-like devices.” They additionally embrace different purposes that builders have but to design. The contracts introduce non-linearity and expiry with out leverage. Additionally, it enhances HyperCore’s expressivity whereas remaining suitable with present options, together with portfolio margining and the HyperEVM.

The group mentioned outcomes are nonetheless a piece in progress and are presently being examined on testnet. Canonical markets, based mostly on goal settlement sources and denominated in USDH, will probably be deployed as soon as improvement is full. Based on person suggestions, Hyperliquid plans to increase its infrastructure to help permissionless deployment.

Builders see a shift past value buying and selling

The announcement triggered completely different reactions throughout crypto X, with a number of builders framing HIP-4 as a foundational shift.

Abhitej, co-founder of Bento.enjoyable, argued that end result buying and selling expands crypto’s addressable market far past conventional asset hypothesis. While value buying and selling is proscribed by the variety of tradeable belongings, he mentioned, end result buying and selling opens an infinite design house tied to real-world occasions and knowledge.

Others highlighted that Hyperliquid already controls the toughest layers of the stack, distribution, liquidity, and interoperability. This implies that the aggressive frontier now shifts towards utility design. In that case, HIP-4 turns Hyperliquid right into a substrate for constructing markets about outcomes.

Another X person “Wanderer” reacted to the news, contrasting Hyperliquid’s execution-heavy method with extra marketing-driven launches elsewhere. Wanderer described the HIP-4 drop as “0 to 1 power we haven’t felt in years,” saying it was “bringing again the true OG crypto vibes.”

These reactions replicate Hyperliquid’s innovation extra intently resembling early crypto experimentation than incremental DeFi upgrades.

Prediction markets with out the standard trade-offs

Technically, HIP-4 distinguishes itself from each leveraged derivatives and plenty of present prediction market designs. By avoiding leverage and liquidations, outcomes cut back the reflexive danger spirals that may plague derivatives throughout risky occasions. At the identical time, the usage of fastened settlement ranges makes the contracts simpler to cause about for non-professional merchants.

That design selection might show vital as prediction markets acquire consideration past crypto customers. While CFTC-regulated platforms such as Kalshi and Coinbase are constructing occasion contracts inside a tightly supervised framework, Hyperliquid is pursuing a distinct path. It is integrating end result markets straight right into a high-liquidity derivatives engine.

Rather than competing head-to-head on regulatory compliance, HIP-4 positions Hyperliquid as infrastructure for builders who wish to experiment with new market varieties.

HYPE token rallies on quantity surge

The product announcement coincided with sturdy market efficiency for Hyperliquid’s native token. Over the previous 24 hours, HYPE recorded greater than $1.08 billion in buying and selling quantity, a 33% improve from the day gone by.

According to CoinGecko data, HYPE is up 24% over the previous seven days, outperforming the crypto market, which is down roughly 12% over the identical interval. The token has additionally outperformed different good contract platform belongings, which have fallen by greater than 13%.

Market members seem like pricing in HIP-4 as greater than a characteristic replace, viewing end result buying and selling as a possible catalyst that expands Hyperliquid’s whole addressable market (TAM).

If that is profitable, HIP-4 may very well be a turning level at which prediction markets shift from standalone merchandise to composable constructing blocks inside broader buying and selling techniques.

For now, outcomes stay on testnet. But judging by the response from builders and the market’s response in $HYPE, Hyperliquid’s transfer has already reframed expectations for what a top-tier crypto buying and selling platform may be.

The publish Hyperliquid Unveils Event Trading With HIP-4 as HYPE Token Rallies appeared first on DeFi Rate.

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