Kalshi Exec’s Hyperliquid Proposal Aims to Revolutionize Prediction Market Deployment
Prediction markets just got a potential game-changer—straight from the trading floor to the blockchain.
Hyperliquid's New Fix
A Kalshi executive dropped a bombshell improvement proposal that could finally solve prediction markets' deployment headaches. The move cuts through traditional infrastructure limitations and bypasses legacy system bottlenecks that have plagued the sector for years.
Why It Matters
Prediction markets have struggled with scalability and integration issues since their inception. This proposal doesn't just tweak the existing framework—it rebuilds the plumbing entirely. Active traders might finally get the seamless experience they've been demanding, while platforms could see reduced operational overhead almost immediately.
The proposal arrives at a perfect time, when traditional finance firms are still trying to figure out whether blockchain is a threat or a trend—meanwhile, crypto natives keep building the future right under their noses.
Oracle price settlement shows asymmetric timing, with upward movement from 0.5 to 1.0 occurring rapidly while downward settlement requires approximately 50 minutes. Image: HIP-4
Auction mechanism for fair price discovery
Event Perpetuals launch through single-price clearing auctions lasting approximately 15 minutes.
The system evaluates all candidate prices to maximize matched volume, with tie-breaking favoring minimal imbalance and prices closest to 50%.
The clearing mechanism diagram shows bid and ask distributions across price levels, with the system calculating optimal clearing prices that balance supply and demand.
Orders execute uniformly at the determined opening price before continuous trading begins.
Builders deploy markets by staking 1 million HYPE tokens and can charge up to 50% additional fees above base rates.
The infrastructure supports market recycling, allowing new events to replace resolved markets within existing slots.
Event Perpetuals operate with 1x isolated margin only, requiring buyers to deposit collateral equal to their maximum potential loss.
The proposal concludes that trading occurs within price bands of 0.001 to 0.999, with resolution oracles posting final values during specified challenge windows for dispute resolution.
