Hyperliquid enables validators to settle real-world event markets

Hyperliquid has added validator-settled outcome markets for off-chain events under the HIP-4 upgrade, extending its trading system beyond perpetual futures to predictive markets.

HyperLiquid said the new market will be published through automated newsfeed software that validators run as part of their normal chain operations. The exchange said validators will vote on which regular markets will be deployed and how those markets will be settled after the event ends.

This system gives Hyperliquid validators a role that other prediction market platforms typically assign to separate oracle services or internal settlement processes. Hyperliquid said its validators evaluate market rules, accuracy, and market quality before deployment and during settlement.

“Verifiers vote on the development and settlement of legitimate markets based on a variety of factors, including clear rules, accuracy, and the subjective quality of the market,” the team said.

Hyperliquid uses validators for event resolution

In the HIP-4 design, market resolution occurs within Hyperliquid’s proprietary network. Validators act as sources for resolving real-world events, rather than transmitting dispute and settlement decisions to external systems.

Hyperliquid developer Yaugourt told X: “Hyperliquid just removed the need for an external oracle in prediction markets. The validator set itself became an oracle.” In the same post, Yaugourt said Hyperliquid has made real-world event resolution a “native chain capability.”

The model is different from Polymarket and Karshi. Polymarket uses UMA’s Optimistic Oracle, which allows users to suggest and dispute results through a separate protocol layer. Operating as a regulated exchange, Karshi processes payments through its own exchange framework, subject to regulatory oversight.

For Hyperliquid, the “genuine” label refers to markets that have been vetted and settled by validators. Validators will consider whether the market rules are clear and whether the market meets quality standards before becoming part of the official results market system, the exchange said in a statement.

HIP-4 brings fully collateralized prediction markets

Hyperliquid said Outcome Market went live on mainnet on May 2 through an initial release with limited functionality. The HIP-4 upgrade expands the exchange’s product range from perpetual futures to event contracts tied to real-world outcomes.

According to Hyperliquid, these performance agreements are fully collateralized. It is settled within a certain range and does not involve leverage or liquidation. The exchange said this structure allows it to be separated from perpetual futures while keeping them within the same trading environment.

HyperLiquid on Monday launched its first off-chain event market titled “May CPI YoY”. According to the trading page, market volume was recorded at $11,268.

The first market shows how the exchange plans to use HIP-4 for public events that take place outside of the blockchain network. The release of economic data, such as inflation rates, is one category of events that allow traders to set prices before final settlement.

Shared Collateral Adds Use Cases for Trading Desks

The new market format also provides Hyperliquid users with a way to hold event market positions and perpetual contracts in one account. One account can use shared collateral across different types of positions on the platform.

“Sophisticated traders will be able to find ways to leverage margin in their portfolios and generate alpha from these two different market types,” said Sunny See, an investor at Thinkocracy Capital.

This structure may be relevant for trading desks that compare the use of capital across standalone prediction markets and derivatives exchanges. Hyperliquid’s setup maintains the resulting market within the same exchange system that already supports perpetual futures trading.