Hyperliquid is introducing “Outcome Trading” through the HIP-4 upgrade, which is currently active on the protocol’s testnet.
The new primitive supports fully collateralized contracts for prediction markets and bounded options without the need for leverage or the risk of liquidations.
Markets will be denominated in the native USDH stablecoin and utilize the HyperCore engine for high-performance settlement.
Hyperliquid, the decentralized derivatives powerhouse, is broadening its financial reach with the debut of Outcome Trading via the HIP-4 (Hyperliquid Improvement Proposal 4) upgrade. Announced on Monday, the new feature allows the protocol’s core engine, HyperCore, to support range-settled contracts designed specifically for prediction markets and bounded, options-like instruments.
The introduction of Outcome Trading marks a significant architectural shift from the platform’s primary focus on perpetual futures. These new contracts are fully collateralized, meaning they settle within a predefined range and carry no risk of margin calls or forced liquidations. By removing leverage from the equation, Hyperliquid aims to provide a lower-risk environment for event-based trading, a sector that has seen explosive growth and regulatory attention over the past year.
According to the development team, the new primitive is designed to enhance the “expressivity” of the Hyperliquid Layer 1 blockchain. “The outcome primitive expands the expressivity of HyperCore, while composing with other primitives such as portfolio margin and the HyperEVM,” the team noted. The feature is currently undergoing testing on the testnet, with plans to launch canonical markets once technical stability and user feedback have been integrated.
Initial mainnet deployments will focus on standardized markets derived from objective settlement sources, all denominated in USDH, Hyperliquid’s native stablecoin. Over time, the protocol intends to transition the infrastructure toward permissionless deployment, mirroring the success of the HIP-3 framework which allowed users to create custom perpetual markets. This evolution follows a period of record activity for the exchange, which recently saw its total open interest surpass $4.9 billion amid growing demand for on-chain assets.
Market reaction to the announcement was swift, with the protocol’s native HYPE token rising more than 10% to surpass the $32 mark. Investors are increasingly viewing Hyperliquid not just as a decentralized exchange, but as a foundational Layer 1 stack capable of hosting complex DeFi applications. The addition of dated, non-linear contracts further distinguishes the network from its competitors by integrating prediction market capabilities directly into its high-speed settlement layer.
Disclaimer: This article is for informational purposes only and does not constitute advice of any kind. Readers should conduct their own research before making any decisions.
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