Hyperliquid Launches HIP-4 and Targets Polymarket With Zero-Fee Outcome Markets

⦿ Executive Snapshot

What: Hyperliquid launched HIP-4 Outcome Markets on May 2, 2026, enabling fully collateralized onchain prediction markets.
Who: Hyperliquid, Polymarket, Kalshi, and traders using the HIP-4 platform.
Why it matters: This launch introduces a zero-fee structure for outcome markets, aiming to capture market share from existing competitors and enhance trading efficiency.

HIP-4 allows traders to open positions without fees, directly targeting competitors Polymarket and Kalshi.
The new contract type differs from HIP-3 by supporting binary and multi-outcome event contracts, which are better suited for discrete events.
Traders can buy YES or NO tokens that represent the implied probabilities of events, with prices floating between 0.001 and 0.999 during trading.
Initial markets feature daily BTC price threshold events, with plans to expand into categories like politics, sports, and macro data releases.
Builders can deploy their own markets by staking 1,000,000 HYPE, with penalties for rule violations.

The launch of HIP-4 represents a significant advancement in Hyperliquid's market offerings, moving into the prediction market sector which has gained traction in the crypto space.
This development fits into the broader narrative of decentralized finance (DeFi) evolving to include more diverse trading instruments and market functionalities, enhancing user engagement.

The zero-fee model could disrupt traditional prediction markets by attracting higher trading volumes and user engagement.
Long-term, the integration of prediction markets with existing trading functionalities may lead to increased liquidity and user retention for Hyperliquid.

Regulatory challenges may arise as prediction markets become more mainstream, potentially impacting operational viability.
Competition from established platforms like Polymarket and Kalshi could limit market penetration and user adoption for HIP-4.

The success of HIP-4 will be measured by the volume of trades and user adoption rates in the coming months.
Future developments, such as the introduction of permissionless market deployment, will signal the platform's growth and adaptability in the prediction market space.