Hyperliquid launches HIP-4 permissionless deployment on testnet

Hyperliquid has activated the first implementation of HIP-4 permissionless deployment on testnet, allowing developers to create fully collateralized bounded-outcome contracts without prior approval. The framework is aimed initially at prediction markets and similar products such as capped-range options, and Hyperliquid has said more features, including configurable fees and additional templates, are planned before any mainnet launch. HIP-4 is designed for contracts that settle within a fixed range, which limits payoff exposure and avoids the undercollateralized positions and liquidation dynamics common in margin-based products. The move extends Hyperliquid beyond its existing high-throughput order book for perpetuals and spot assets and positions it more directly against specialized prediction-market venues such as Polymarket and Kalshi. Because deployment is permissionless, developers can test new markets on equal footing, though the open model also raises questions around liquidity fragmentation, contract discovery and the reliability of resolution mechanisms at scale. Mainnet timing remains unconfirmed. Earlier reporting showed HIP-4 markets had about $182,000 in open interest and $881,000 in notional trading volume, with sports contracts accounting for most activity and volumes cooling after the end of the 2026 FIFA World Cup earlier in July. HYPE traded near $54.70, down almost 2% over 24 hours and below $55, as broader crypto weakness, a large whale transfer to FalconX and Coinbase Prime, and concerns about market-pricing risks weighed on sentiment. Those risks were underscored by a July 28 incident in a HIP-3 market tracking SK Hynix shares, where Hyperliquid said Trade.xyz deployed and operated the contract and is reviewing a brief 17.9% drop linked to an unusually low pre-market trade in South Korea that affected its oracle price. The rollout also comes as U.S. regulators weigh clearer federal standards for event contracts after the Hyperliquid Policy Center and Multicoin Capital backed the Commodity Futures Trading Commission’s proposed prediction-market framework in a joint comment on July 27.