Hyperliquid, Will 'Zero Fee' Policy Work?...Declares Head-on Competition Targeting Polymarket

▲ Hyperliquid (HYPE)/AI Generated Image

Hyperliquid has officially entered the prediction market, unveiling an aggressive strategy targeting Polymarket, an existing powerhouse.

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 that settles to 0 or 1 depending on the outcome of a specific event. Users bet on the probability of an event occurring by purchasing 'YES' or 'NO' tokens, with prices fluctuating between 0.001 and 0.999. Contracts are settled based on designated oracle data at maturity.

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 the outcome of single events, such as election results or economic indicator announcements.

Notably, the fee policy has been presented as a core strategy. By introducing a 'zero-fee' structure that does not charge fees upon entering a position, it directly confronts the existing fee models of Polymarket and Kalshi. Fees are only incurred during liquidation or settlement phases.

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 if rules are violated, the staked assets will be burned. This is explained as a mechanism to maintain market reliability.

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 in the same on-chain order book.

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