Hyperliquid Improvement Proposal Aims to Revolutionize Prediction Markets

John Wang, Kalshi's head of crypto, and three co-authors submitted Hyperliquid Improvement Proposal 4 (HIP-4) on September 16. The proposal introduces 'Event Perpetuals'—a novel mechanism designed to overcome limitations in Hyperliquid's existing infrastructure for prediction markets.

Current constraints under HIP-3 require continuous oracle updates and enforce 1% price change limits per tick, creating impractical delays for binary event resolution. Event Perpetuals eliminate these friction points by removing oracle feeds and funding payments, allowing prices to reflect pure market activity.

The solution demonstrates particular urgency in time-sensitive scenarios like sports betting. Under current infrastructure, resolving an NFL wager from neutral probability to zero WOULD take 50 minutes—an eternity in live markets that creates arbitrage vulnerabilities.