The decentralized exchange Hyperliquid has introduced validator-settled outcome markets for real-world events under its HIP-4 upgrade. This move expands the platform’s offerings beyond perpetual futures into prediction markets, using its own validators to deploy and settle these contracts instead of relying on external oracles.
According to the team, validators run automated newsfeed software as part of normal chain operations and vote on which markets become canonical—meaning they are vetted for clarity and quality before deployment and during final settlement. This approach integrates event resolution directly into the network, making it a native chain function.
Validators as Oracles
Hyperliquid developer Yaugourt emphasized that the validator set now serves as the oracle for prediction markets. This differs from platforms like Polymarket, which uses UMA’s Optimistic Oracle for dispute resolution, or Kalshi, which handles settlement under regulatory oversight. By leveraging the same validators that secure over $3 billion in deposits, Hyperliquid ensures consensus-backed event outcomes.
The first off-chain market, titled “May CPI year-over-year,” reflects the platform’s intent to support trading on economic data releases. As of launch, the market had recorded over $11,000 in volume.
Fully Collateralized Contracts
HIP-4 introduces outcome contracts that are fully collateralized, settle within a fixed range, and involve no leverage or liquidations. This separates them from perpetual futures while operating within the same trading environment. Users can hold both event market positions and perpetual contracts in a single account, utilizing shared collateral across different asset types.
Syncracy Capital investor Sunny Shi noted that sophisticated traders could exploit portfolio margin benefits, generating alpha from the interplay between these two market types. This structure may appeal to trading desks seeking efficient capital use across prediction and derivative markets.