Hyperliquid is seeking community feedback on a protocol upgrade that would enable permissionless deployment of HIP-4 prediction markets using validator-approved templates. The proposal aims to reduce the approval burden on validators by allowing market creators to launch prediction markets without individual approval for every listing, addressing the challenge that the potential number of tradeable events is too extensive for case-by-case validator review. Under the proposed system, validators would approve standardised on-chain templates defining market operation rules, while individual deployers would assume responsibility for creating and settling markets within those template parameters.
Before permissionless deployment begins, validators would vote on standardised templates that define how markets should operate, with those specifications stored and enforced on-chain. Once approved, deployers would be responsible for creating and settling individual markets within the template rules. Validator-created canonical markets would continue but are expected to remain limited to fewer than 10 outcomes or questions annually.
Hyperliquid Sets 500,000 HYPE Staking Requirement for Market Deployers
Participation would require deployers to lock up a stake of 500,000 HYPE. Validators could partially or completely slash that stake if markets are poorly defined, settled incorrectly or left unresolved for more than a week. The locked stake would remain inaccessible for six months, and deployers would have to settle every outstanding market before reclaiming it, mirroring the existing HIP-3 framework.
The proposal introduces an initial allocation covering 100 outcomes, equal to 200 outcome tokens, with capacity becoming available again as markets are settled. Hyperliquid intends to add an auction system allowing deployers to obtain additional allocation, while market creators would be permitted to charge fees of up to 50%.
Hyperliquid Plans Testnet Deployment Before Mainnet Launch
The upgrade is planned to debut on testnet before progressing to mainnet, with details still open to change after community consultation.
FAQ
What is Hyperliquid's proposal for prediction markets?
Hyperliquid is seeking community feedback on a protocol upgrade that would allow permissionless deployment of HIP-4 prediction markets using validator-approved templates, reducing the need for validators to individually approve every market.
How much HYPE must deployers stake to create prediction markets?
Deployers must lock up a stake of 500,000 HYPE, which validators can partially or completely slash if markets are poorly defined, settled incorrectly or left unresolved for more than a week. The stake remains inaccessible for six months.
What are the deployment limits for Hyperliquid prediction markets?
The proposal introduces an initial allocation covering 100 outcomes, equal to 200 outcome tokens, with capacity becoming available again as markets are settled. Market creators would be permitted to charge fees of up to 50%.
