Hyperliquid Launches Outcome-Based Contracts on Testnet Under HIP-4 Proposal
Hyperliquid's HyperCore trading engine has introduced outcome-based contracts through its HIP-4 proposal, now live on testnet. The feature eliminates leverage and liquidations, catering to prediction markets and range-bound strategies.
Fully collateralized outcome contracts settle within predefined ranges, capping gains and losses to prevent liquidation cascades. Integration with HyperCore's portfolio margining and HyperEVM is expected to enhance flexibility.
USDH will serve as the settlement currency for canonical markets post-development. Permissionless deployment is under consideration, potentially allowing user-created outcome markets.
DeFi researcher Ignas highlights composability as HIP-4's standout feature, enabling traders to hedge directional risk by offsetting perpetual contracts.
