Hyperliquid is preparing to expand its prediction market ecosystem by introducing permissionless deployment for HIP-4 outcome markets. The feature will first launch on the testnet before eventually moving to the mainnet.
The goal is to make it easier to create prediction markets without requiring validators to approve every new market. Hyperliquid said the number of potential events and outcomes is simply too large for validators to manage on their own.
Under the proposed system, validators will approve standardized market templates that define how different types of prediction markets should work. These templates will be stored on-chain, and once approved, anyone can use them to create new markets without needing additional validator approval.
Market creators, known as deployers, will be responsible for setting up and settling their markets according to the approved rules. While validator-created “canonical markets” will still exist, Hyperliquid expects them to be used only occasionally, with fewer than 10 such markets created each year.
To become a deployer, users will need to stake 500,000 HYPE tokens. This stake acts as a security measure. If a market is poorly designed, settled incorrectly, or left unresolved for more than a week, validators will have the power to partially or fully slash the deployer’s stake.
Like the network’s HIP-3 system, the stake will remain locked for six months. Deployers must also settle all active markets before they can withdraw their tokens.
Initially, each deployer will be allowed to manage up to 100 outcomes, or 200 outcome tokens. Markets with multiple possible outcomes will use more of this allocation. As markets are settled, capacity will be freed up for future deployments. Hyperliquid also plans to introduce an auction system that would allow deployers to increase their allocation.
The proposal would also let market creators charge fees of up to 50% on the markets they create. However, Hyperliquid emphasized that the plan is still in the proposal stage and could change based on community feedback.
The move builds on the launch of HIP-4 in May, which introduced prediction markets to the Hyperliquid ecosystem. According to the company, prediction markets generated around $100 million in trading volume during their first month.
Hyperliquid’s growth has also attracted attention from the broader financial industry. Earlier this month, Bitwise added HYPE to its Bitwise 10 Crypto Index ETF (BITW), giving the token a weighting of roughly 0.95% alongside some of the largest cryptocurrencies in the market.
The addition came after Hyperliquid reported impressive growth during the first half of 2026, including approximately $1.34 trillion in trading volume and about $320 million in revenue. The latest proposal signals that the platform is continuing to invest heavily in expanding its prediction market offerings and overall ecosystem.
