Hyperliquid adds native oracles to power HIP-4 outcome markets

Hyperliquid has shifted its approach to prediction markets, offering native oracles and resolutions. HIP-4 also switched to using USDC as its main liquidity source. 

Hyperliquid announced it will support canonical outcome markets based on off-chain events, as outlined on its Telegram channel. As Cryptopolitan reported earlier, HIP-4 took 0.7% of the prediction market on its first day of trading. As of May 2026, HIP-4 achieved 1% of the volumes of Polymarket, based on still limited outcome pairs. 

Existing Hyperliquid validators will run specialized software that automates newsfeeds as event outcomes. The newsfeed will become a part of the regular Hyperliquid chain operations. 

Unlike on Polymarket, the platform will not depend on third-party oracles or outcome voting systems. Polymarket’s reliance on UMA oracles and voting has led to several heavily contested markets and discussions of market manipulation.

Validators themselves will vote on the deployment and settlement of the new type of canonical markets. The current network supporters will resolve the potentially subjective and ambiguous markets. The outcomes will depend on 24 existing validators, which produce Hyperliquid L1 blocks in under a second, and secure $3B in liquidity.

Canonical markets do not guarantee objectivity, but protect from exposure to external voting systems. Validators will still vote on outcomes, and are one possible vector of subjectivity. However, smaller resolution systems have shown a risk of whale influence, allowing the manipulation of some markets. 

HIP-4 offers real-world outcome markets

Initially, HIP-4 started with outcomes for crypto price movements, converging perpetual futures with prediction markets. Recently, the platform offered macro outcomes, with predictions on Fed interest rates or inflation levels.

The platform’s goal is to automate the workflows, adding AI agents as proposers of new markets. Validators will then have the task of approving those markets and tracking the outcomes.

Prediction markets launched on May 2, and are still in their early stages, with a limited number of outcomes. For now, Hyperliquid is still in control on new market launches. In the future, HIP-4 will follow the model of HIP-3, allowing third-party validators to create outcome pairs. To date, the platform has carried 1M trades, and hosts around 500 traders.

HIP-4 will depend on builders, and some of the top HIP-3 deployers may create new markets. With this approach, the prediction market may converge with perpetual futures. The positioning of all markets in a single ecosystem may allow cross-margin trading and a concentration of liquidity.

Builders will create a competitive environment, trying to launch the most in-demand and liquid prediction pairs.

HIP-4 will also allow a novel approach to on-chain insurance, with transparent payouts in the case of predetermined outcomes. The markets can also serve as binary options, using the simplified binary outcome infrastructure.

Hyperliquid recovers value locked

Hyperliquid is one of the main ecosystems to resist the weakening sentiment of the crypto market. The platform now carries $5.53B in total value locked, down from $5.93M in October 2025.

Up to 40% of the newly active volumes come from HIP-3, onboarding flexible trading for traditional assets. Outcome markets may further boost volumes and fees.

As a result of the increased activity, the native HYPE token set a series of new price records. HYPE traded at $59.58, after peaking at $63.70, becoming one of the top growth tokens. The recent HYPE rally got a boost from whales, but was also an indicator of the positive view of Hyperliquid and its growth expectations.

If you're reading this, you’re already ahead. Stay there with our newsletter.