Hyperliquid is shifting its approach to prediction markets and offering native oracles and solutions. HIP-4 also switched to using USDC as its primary liquidity source.
Hyperliquid has announced that it will support a canonical results market based on off-chain events, as outlined in its Telegram channel. As a cryptopolitan reported Previously, HIP-4 accounted for 0.7% of the prediction market on the first day of trading. Achieved HIP-4 as of May 2026 1% Out of the volume of Polymarket, based on pairs of results still limited.
Existing Hyperliquid validators run specialized software that automates newsfeeds as a result of events. The newsfeed will be part of normal Hyperliquid chain operations.
Unlike Polymarket, this platform does not rely on third-party oracles or outcome voting systems. Polymarket’s dependence on UMA oracles and voting has led to intense battles in several markets and discussions of market manipulation.
Validators themselves will vote on the development and settlement of new types of formal markets. Current network supporters resolve a potentially subjective and ambiguous market. The results rely on 24 existing validators that generate Hyperliquid L1 blocks in less than a second and secure $3 billion in liquidity.
Although formal markets do not guarantee objectivity, they do protect against exposure to external voting systems. Validators continue to vote resultand are one possible vector of subjectivity. However, smaller resolution systems show the risk of being influenced by whales and allow for some market manipulation.
HIP-4 provides a real-world outcome market
Initially, HIP-4 started with the results of cryptocurrency price movements and integrated perpetual futures and prediction markets. Recently, the platform provided macro results that predict Fed interest rates and inflation levels.
The goal of this platform is to automate workflows and add AI agents as new market proponents. Validators are tasked with approving those markets and tracking the results.
The prediction market was launched on May 2nd, but is still in its early stages and has a limited number of results. For now, Hyperliquid is still leading the way in new market launches. In the future, HIP-4 will follow the model of HIP-3 and allow third-party validators to create pairs of results. To date, the platform has made 1 million trades and hosts around 500 traders.
HIP-4 relies on construction contractors, and some of the top HIP-3 implementers could create new markets. This approach could cause prediction markets to converge to perpetual futures. Placing all markets within a single ecosystem could allow for cross-margin trading and concentration of liquidity.
Builders create a competitive environment and try to launch the most in-demand and liquid prediction pairs.
HIP-4 also enables a new approach to on-chain insurance with transparent payments in case of pre-determined outcomes. The market also functions as a binary option using a simplified binary outcome infrastructure.
Hyperliquid recovers locked value
Hyperliquid is one of the major ecosystems resisting the weakening of cryptocurrency market sentiment. The platform currently has a total locked value of $5.53 billion, down from $5.93 million in October 2025.
Up to 40% of new active volume comes from HIP-3, onboarding flexible trading of traditional assets. Outcome markets may further increase trading volumes and fees.
As a result of increased activity, native speakers $HYPE The token has set a series of new price records. $HYPE After peaking at $63.70, it traded at $59.58, making it one of the top growth tokens. recent $HYPE While the rally was fueled by whales, it was also an indicator of positive views on Hyperliquid and its growth expectations.
