Hyperliquid plans to introduce decentralized prediction markets in HIP-4 upgrade

Hyperliquid said its HIP-4 upgrade, which introduced “outcome trading” to the decentralized exchange, will support permissionless deployment of the contracts in a future enhancement.

Once live, anyone will be able to offer a prediction market on the platform, subject to templates approved by validators, Hyperliquid said on Telegram on Sunday. In the meantime, they remain under the authority of validators.

Prediction markets, a sector dominated by Polymarket and Kalshi, allow participants to bet on event outcomes and have evolved into a multibillion-dollar sector of the blockchain industry. Users take positions on events from central bank interest-rate decisions to who performs at the Super Bowl halftime show.

The growing popularity of the platforms — the FIFA World Cup, which wrapped up Sunday with Spain winning its third title, drew more than $50 billion in bets — has attracted centralized trading platforms like Coinbase and Robinhood into the sector to offer customers a one-stop shop for predictions markets alongside more conventional financial trading.