Hyperliquid's HIP-4 to support permissionless deployment for outcome markets

Hyperliquid announced that it will introduce permissionless deployment for HIP-4 outcome markets in a future upgrade. The feature will first launch on testnet before moving to mainnet.

According to its Sunday announcement on Telegram, Hyperliquid said permissionless deployments are "especially important" for the growth of outcome markets, given the vastness of the possible universe of tradeable outcomes.

To maintain quality and clarity of prediction markets, validators are expected to vote on standardized outcome templates. The templates, with specifications stored and enforced onchain, will serve as the foundation for permissionless market deployments.

Deployers will then be able to instantiate approved templates, and will be responsible for defining and settling individual markets in accordance with the template's criteria.

"Canonical markets may still be deployed directly by validators from time to time, but these are expected to be rare," Hyperliquid said in the announcement. "These canonical markets will be determined by validator vote, and ideally will represent fewer than 10 outcomes or questions per year."

Requirements

HIP-4 deployers will be required to stake 500,000 HYPE (HYPE). This stake can be partially or fully taken away by validator vote in cases of poorly defined markets, incorrect settlement, or failure to settle within one week. As with HIP-3, the stake will be locked for six months, and deployers must settle all outstanding markets before unstaking.

Each deployer will initially receive an allocation for 100 outcomes (200 outcome tokens). While multi-outcome questions will consume multiple slots from this allocation, settled outcomes will free up allocation for reuse. An auction mechanism to increase allocations is planned as a follow-up feature.

Deployers will be permitted to set fees of up to 50% on their markets. All details remain preliminary and are subject to change based on community feedback, Hyperliquid added.

Hyperliquid launched HIP-4 in May, bringing the highly popular prediction market feature to the platform's high-performance blockchain, and attracted around $100 million in volume in its first month.