Hyperliquid, will its 'zero' fee policy work? ...Declares a direct challenge, targeting Polymarket

▲ Hyperliquid (Hyperliquid, HYPE)/AI generated image

Hyperliquid has officially entered the prediction market, unveiling an aggressive strategy targeting the incumbent leader, Polymarket.

Bitcoinist reported on May 2nd (local time) that Hyperliquid launched its HIP-4 based ‘Outcome Market’ on the mainnet. This update adds on-chain binary prediction contracts, which can be utilized from the same account as existing futures and spot trading.

HIP-4 features a structure where settlements are made as 0 or 1 based on the outcome of a specific event. Users bet on the probability of an event by purchasing ‘YES’ or ‘NO’ tokens, and prices fluctuate between 0.001 and 0.999. Contracts are settled based on designated oracle data upon expiry.

This structure is distinct from the existing HIP-3. While HIP-3 was a perpetual futures structure for assets with continuously changing prices, such as stocks, commodities, and foreign exchange, HIP-4 is designed to focus on single event outcomes, like election results or economic indicator announcements.

In particular, the fee policy has been presented as a core strategy. It introduces a ‘zero-fee’ structure that does not impose fees upon entering a position, directly challenging the existing fee models of Polymarket and Kalshi. Fees only occur during the liquidation or settlement stages.

The initial market will operate around verified events. The first contract is structured to ask whether the price of Bitcoin (BTC) exceeds a certain level at a specific time. It plans to expand to various events in the future, including politics, sports, and macroeconomic indicators.

Market creators must meet certain conditions. To open a new prediction market, 1 million HYPE must be staked, and these assets will be burned if rules are violated. This is described as a mechanism to maintain market trustworthiness.

Hyperliquid also emphasized integration with the existing trading environment. Users can simultaneously manage spot, futures, and prediction market positions from the same account without separate fund transfers, and all orders are processed on the same on-chain order book.

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