- Validators would approve reusable on-chain templates so market creators can launch prediction markets without seeking approval for every listing.
- Anyone creating markets would assume responsibility for settlement while risking a substantial HYPE stake if standards are not met.
- The proposal also sets deployment limits, allows creator fees and outlines future capacity auctions ahead of a planned testnet rollout.
Hyperliquid is seeking community feedback on a protocol upgrade that would allow permissionless deployment of HIP-4 prediction markets using validator-approved templates. The proposal aims to broaden outcome markets by reducing the need for validators to individually approve every market, as the potential number of tradeable events is considered too extensive for that approach.
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.
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New Rules Include Staking and Fee Limits
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 also 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%. The upgrade is planned to debut on testnet before progressing to mainnet, with details still open to change after community consultation.
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