Hyperliquid Proposes 'Outcome Trading' for Prediction Markets, HYPE Token Jumps 11%

Hyperliquid is advancing into prediction markets with “outcome trading” via Hyperliquid Improvement Proposal 4 (HIP-4), enabling fully collateralized, bounded-range contracts on its HyperCore infrastructure. The feature, now in testnet, aims to support event-based markets without leverage or liquidations, using the USDH stablecoin for settlement. Prediction markets recorded $12.4 billion in volume last month, per Dune Analytics. Myriad co-founder Farokh Sarmad said Hyperliquid’s move could expand the total addressable market and unlock novel use cases. The HIP-4 proposal, first published in September 2025, may eventually allow permissionless market deployment pending user feedback. The announcement coincides with rising regulatory scrutiny—Polymarket faces bans in Hungary, Portugal, Nevada, and Tennessee over whether such platforms constitute gambling. Despite this, Coinbase recently launched Kalshi-powered prediction markets nationwide. Hyperliquid’s HYPE token rose 11% in 24 hours to $32.83 following the news.