TLDR
- Hyperliquid introduces outcome trading through the HIP-4 protocol upgrade.
- The new trading feature offers fully collateralized, fixed-range contracts.
- Outcome trading reduces risks by eliminating leverage, margin calls, and liquidation.
- The product is live on testnet and integrates with Hyperliquid’s margin system.
- HIP-4 expands Hyperliquid’s offerings beyond perpetual futures and introduces new prediction markets.
Hyperliquid has launched a new trading feature, outcome trading, through its HIP-4 protocol upgrade. This introduces a fresh approach to derivatives, tailored for prediction markets and limited-risk options contracts. The new product is now live on the testnet and promises to offer a less risky trading environment compared to traditional leveraged futures.
HIP-4 Brings New Outcome Trading Features
The introduction of HIP-4 enables Hyperliquid users to trade fully collateralized, fixed-range contracts. These contracts settle without leverage, margin calls, or liquidation risks, making them distinct from other trading products on the platform. Hyperliquid believes this upgrade will increase the platform’s appeal for prediction markets and derivative traders.
The upgrade follows the success of HIP-3, which contributed to a surge in trading volume, reaching $42 billion. According to Hyperliquid’s team, this upgrade was designed to meet the growing demand for less risky trading solutions. The new feature will integrate seamlessly with Hyperliquid’s existing margin system and the HyperEVM.
Hyperliquid’s new outcome trading feature is designed for greater flexibility and security. Unlike perpetual futures, the outcome markets will not face liquidation risks and will settle within fixed ranges. This introduces a new category of trading, providing tools for prediction markets and options instruments for developers.
As part of the HIP-4 rollout, Hyperliquid also plans to allow permissionless deployment for new outcome pairs. This will open the platform to developers, enabling them to create unique prediction markets and derivatives. This addition strengthens Hyperliquid’s position in the competitive derivatives space.
The new outcome trading system is currently being tested, with Hyperliquid planning to launch live markets after the testnet phase concludes. As part of the upgrade, Hyperliquid will use its native stablecoin, USDH, to settle these markets. This move aligns with the platform’s goals of simplifying derivatives trading while maintaining liquidity and transparency.
Hyperliquid’s Growing Market Share and Future Plans
Despite recent market fluctuations, Hyperliquid’s trading volume has shown resilience. As of February 2, the platform’s BTC open interest stands at $1.77 billion, with a total open interest of $4.97 billion. Even with these outflows, the platform continues to experience growth, particularly in its custom perpetual markets.
Jeff Yan, Hyperliquid’s CEO, emphasized the platform’s commitment to neutrality in its operations. “The house of all finance must be credibly neutral,” Yan stated, referring to the company’s decision to avoid private investor deals and market maker arrangements. This neutral stance is part of Hyperliquid’s strategy to build trust within its user base.
The introduction of HIP-4 and outcome trading is a crucial development for Hyperliquid as it seeks to compete with larger platforms like Binance. By offering a more transparent, lower-risk alternative, Hyperliquid aims to expand its user base and continue innovating within the blockchain-based trading space.
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