Hyperliquid Lets Validators Settle Real-World Event Markets

Hyperliquid has added validator-settled outcome markets for offchain events under its HIP-4 upgrade, expanding its trading system beyond perpetual futures into prediction markets.

Hyperliquid said the new markets will be published through automated newsfeed software that validators run as part of normal chain operations. The exchange said validators will vote on which canonical markets are deployed and how those markets are settled after the event ends.

The system gives Hyperliquid validators a role that other prediction market platforms usually assign to a separate oracle service or an internal settlement process. Hyperliquid said validators will assess market rules, correctness, and market quality before deployment and during settlement.

“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.

Hyperliquid uses Validators for event resolution

Under the HIP-4 design, market resolution happens inside Hyperliquid’s own network. Validators act as the source for settling real-world events, rather than sending disputes or settlement decisions to an outside system.

Hyperliquid developer Yaugourt said on X, “Hyperliquid just removed the need for external oracles on prediction markets. The validator set itself is now the oracle.” In the same post, Yaugourt said Hyperliquid had made real-world event resolution “a native chain function.”

The model differs from Polymarket and Kalshi. Polymarket uses UMA’s Optimistic Oracle, where users can propose outcomes and dispute them through a separate protocol layer. Kalshi, which operates as a regulated exchange, handles settlement through its own exchange framework under regulatory oversight.

For Hyperliquid, the “canonical” label refers to markets vetted and settled by validators. The exchange’s announcements said validators consider whether market rules are clear and whether the market meets quality standards before it becomes part of the official outcome market system.

HIP-4 brings fully collateralized Prediction markets

Hyperliquid said outcome markets went live on mainnet on May 2 through an initial release with limited features. The HIP-4 upgrade extends the exchange’s product range from perpetual futures to event contracts tied to real-world outcomes.

According to Hyperliquid, these outcome contracts are fully collateralized. They settle within a fixed range and do not involve leverage or liquidations. The exchange said this structure separates them from perpetual futures while keeping them within the same trading environment.

On Monday, Hyperliquid launched its first off-chain event market, titled “May CPI year-over-year.” According to its trading page, the market had recorded $11,268 in volume.

The first market shows how the exchange plans to use HIP-4 for public events that happen outside blockchain networks. Economic data releases, such as inflation figures, are one category of events that can be priced by traders before final settlement.

Shared collateral adds trading desk use case

The new market format also gives Hyperliquid users a way to hold event market positions and perpetual contracts in one account. A single account can use shared collateral across different types of positions on the platform.

Sunny Shi, an investor at Syncracy Capital, said, “Sophisticated traders will be able to take advantage of portfolio margin and figure out ways to generate alpha from these two different market types.”

The structure may be relevant for trading desks that compare capital use across standalone prediction markets and derivative venues. Hyperliquid’s setup keeps outcome markets inside the same exchange system that already supports perpetual futures trading.