Hyperliquid Rolls Out Validator-Governed Prediction Markets

Hyperliquid announced Monday that it now supports outcome markets tied to offchain events.
The markets will be published through automated newsfeed software and governed by validators, the team said.

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Hyperliquid has begun supporting outcome markets tied to offchain events as part of its HIP-4 upgrade, allowing validators to deploy and settle such prediction markets.

In announcements posted on Telegram and Discord, Hyperliquid said that such outcome markets will be published by automated newsfeed software that validators run as part of their regular chain operations.

"Validators vote on deployment and settlement of canonical markets based on a variety of factors, including unambiguous rules, correctness, and subjective quality of the market," the team said.

The mechanism is designed to embed prediction markets into Hyperliquid's core protocol infrastructure by enabling validators to determine the creation and resolution of markets tied to real-world events. The measure aims to reduce reliance on external oracle systems.

No external oracles

"Hyperliquid just removed the need for external oracles on prediction markets. The validator set itself is now the oracle," Hyperliquid developer Yaugourt wrote on X. "Hyperliquid just made real-world event resolution a native chain function."

This approach differs from those utilized by other major prediction market platforms. Polymarket uses Universal Market Access Optimistic Oracle, which allows participants to propose and dispute market outcomes. Kalshi operates under a more centralized system, with its internal team reviewing evidence and determining market resolutions.

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On Monday, Hyperliquid launched its first offchain event prediction market, titled "May CPI year-over-year," which has accumulated $11,268 in volume so far, according to its trading page.

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HIP-4

Hyperliquid's latest move builds on its HIP-4 upgrade, which expands the platform beyond perpetual futures into prediction markets. On May 2, the team announced that outcome markets had gone live on mainnet in a limited-feature initial release.

According to Hyperliquid, such outcomes are fully collateralized contracts that settle within a fixed range and do not involve leverage or liquidations.

HYPE fell 3.5% over the past 24 hours to trade at $60.25, according to The Block's price page, though it remained up 26.8% over the past seven days.

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