Hyperliquid proposes BTC-settled prediction markets as core exchange primitive
Hyperliquid has introduced HIP-4, a governance proposal to add prediction market outcome contracts to its decentralized exchange. The proposal, published on Hyperliquid's GitBook documentation and submitted to Layer3 for community activation, describes outcome markets as a general-purpose primitive applicable to prediction markets and bounded options-like instruments. The contracts would be fully collateralized binary instruments that settle at 1 if the predicted outcome occurs. According to Reddit sources, the upgrade has gone live on Hyperliquid mainnet with BTC-settled outcome contracts, positioning prediction markets as a potential core trading primitive on the platform.
If passed, HIP-4 would let Hyperliquid traders use BTC collateral for binary outcome positions, giving the DEX a prediction-market primitive before competitors like dYdX or GMX have shipped similar instruments.