Hyperliquid tests 'Outcomes,' moving into booming prediction markets and limited risk options trading

Hyperliquid is adding general-purpose "outcome trading," expanding support for prediction markets or limited-risk options, the team said on Monday.

Outcome trading, or Outcomes for short, will be added as an expansion to Hyperliquid’s in-progress HIP-4 update. The feature is being rolled out first on testnet.

The move comes at a time of explosive growth for prediction markets as a product category, with leading exchanges like Coinbase and Gemini looking to roll out trading to compete with leading firms Polymarket and Kalshi. Truth Social, the fintech and social media firm backed by President Donald Trump, is also working to integrate prediction market trading with a Crypto.com partnership.

It also comes amid a maturing crypto options sector. Hyperliquid (HYPE), a Layer 1 designed specifically for crypto-natives perps trading, has seen cumulative volume grow to nearly $42 billion and recently set an all-time high for open interest.Expand Chart

"There has been extensive user demand in both of these areas, and builders will likely think of novel applications as well," the team wrote on X.

The team notes HIP-4's Outcomes trading adds a safer, more versatile layer to the crypto options sector by introducing fully collateralized, bounded "outcome contracts" that behave like binary or digital options without leverage, margin calls, or liquidation risk. Outcomes will settle in Hyperliquid’s USDH stablecoin and leverage HyperCore, the DEX’s high-performance trading engine and core execution layer.

HIP-4, proposed in mid-2024, looked to implement "Event Futures," or binary outcome contracts like prediction markets, as an extension to HIP-3’s builder-deployed perpetuals. The community-driven proposal is a work in progress.