Hyperliquid has announced plans to introduce permissionless deployment for its HIP-4 prediction markets in a future network upgrade, allowing anyone to launch outcome markets using validator-approved templates.
The feature will first go live on the testnet before expanding to the mainnet. The move marks the next phase of Hyperliquid’s prediction market rollout after months of testing under a validator-controlled environment.
HIP-4 (outcome markets) will support permissionless deployment in a future network upgrade, first on testnet and then on mainnet. As with spot and perp deployments, the technology for outcome markets required sufficient battle testing in a validator-deployed setting before… pic.twitter.com/3YBRTeVemo
— Hyperliquid News (@HyperliquidNews) July 20, 2026
According to the protocol, the initial rollout was intentionally limited to ensure the technology was thoroughly tested before opening it to the wider community.
Hyperliquid opens HIP-4 prediction markets to everyone
Once the upgrade is live, users will be able to deploy prediction markets without seeking direct approval, provided they use templates approved by network validators.
To maintain market quality and reduce spam, deployers must stake 500,000 HYPE tokens before creating markets. The stake will remain locked for six months, and users must settle all active markets before they can withdraw it.
The staked HYPE can only be slashed through validator voting in cases involving poorly designed markets or incorrect settlements.
Hyperliquid also said deployers will receive up to 50% of the trading fees generated by their prediction markets. The protocol will not restrict multiple users from launching identical markets, a design intended to encourage competition.
READ ALSO: Kalshi Considers Potential IPO as Prediction Markets Face Regulatory Pressure
Why permissionless deployment is important
The upgrade is expected to expand Hyperliquid’s outcome market ecosystem by making market creation accessible to any eligible participant.
The protocol noted that prediction market events already outnumber the underlying assets available for perpetual futures and spot tokenization, highlighting growing demand for this sector.
Hyperliquid also revealed that additional HIP-4 features are in development. These include customizable trading fees and an auction mechanism designed to improve how markets operate.
Meanwhile, Hyperliquid recently responded after being added to the Investor Alert List (IAL) maintained by the Monetary Authority of Singapore (MAS), saying the listing does not amount to a ban, enforcement action or finding of wrongdoing.
Can the HYPE token repeat its earlier rally?
The announcement has renewed attention on HYPE, which surged nearly 100% after the initial HIP-4 launch in May. That release included an integration with Kalshi, enabling users to trade fixed-range contracts and bounded options without leverage or liquidation risk.
Despite the latest development, HYPE has remained range-bound around the $60 level. The token traded between $59.89 and $61.56 over the past 24 hours, while trading volume slipped about 2%.
Recent selling pressure from an a16z-linked wallet weighed on sentiment, although Hyperliquid continues to strengthen its position in the derivatives market. The platform recently captured a record 9.5% share of aggregate perpetual futures open interest across centralized exchanges.
Meanwhile, CoinGlass data showed mixed derivatives activity. Total HYPE futures open interest fell more than 2% to $1.36 billion over the last 24 hours, even as open interest on Hyperliquid, Binance, and Bybit increased during the final hours of the session.
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