Hyperliquid (HYPE), one of the fastest-growing decentralized exchanges in crypto, is moving into prediction markets with a proposal aimed at competing with Polymarket and Kalshi.
Hyperliquid Tests HIP-4 Prediction MarketsPerpetuals are derivative contracts with no expiry that typically involve significant leverage, meaning they carry a higher risk profile, especially during volatile price moves that can trigger forced liquidations.
Traders could buy or sell either side, and whichever token corresponds to the correct outcome would settle at a fixed value once the result is known.
A major difference highlighted in the reporting is that these proposed prediction contracts would not rely on leverage. That could reduce the likelihood of liquidation events that frequently disrupt leveraged positions in crypto trading.
Sunny Shi, an investor at Syncracy Capital, suggested the design could change how sophisticated traders approach these bets. He said that HIP-4 would enable traders to take advantage of portfolio margin and find ways to generate “alpha” from the relationship between different market types.
What’s Clear, What’s NotSecond, the prediction contracts would sit inside Hyperliquid’s existing trading system. The implication is that a single trader could potentially manage event bets and other exposures within one account.
HYPE Technicals In FocusWhile the broader crypto market—led by Bitcoin—has experienced a drawdown since October, with a near a 50% crash, HYPE has retained gains. The token is up roughly 110% year-to-date, even as it remains about 33% below all-time highs of $59.
Featured image from OpenArt, chart from TradingView.com
