Hyperliquid plans to enter the prediction market space through a proposed protocol upgrade that would introduce fully collateralised “outcome trading” contracts.
The initiative, outlined in Hyperliquid Improvement Proposal 4, would enable the protocol’s core infrastructure to support contracts that settle within fixed ranges without leverage or liquidations.
“They are a general-purpose primitive that are useful for applications such as prediction markets and bounded options-like instruments,”
Hyperliquid said, citing strong user demand for both use cases.
Interest in prediction markets has surged, with $12.4 billion in trading volume recorded last month across event-based markets covering politics, sports and culture.
“Hyperliquid is about to grow the prediction markets TAM, which is great for the industry as a whole,”
Said Farokh Sarmad, co-founder of Myriad, a prediction market owned by Decrypt’s parent company Dastan.
The outcome trading framework is currently live on Hyperliquid’s testnet, with canonical markets expected to launch once development is complete and contracts denominated in the protocol’s USDH stablecoin.
The move comes as prediction markets face growing regulatory scrutiny worldwide, even as major crypto firms such as Coinbase continue to roll out similar products.
At the time of reporting, Hyperliquid price was $33.74.