Hyperliquid is expanding beyond perpetuals with the upcoming launch of HIP-4, a protocol upgrade that introduces “Outcome” trading, a new way to trade event-based results onchain.

The new contracts are fully collateralized and settle within a fixed range, making them suitable for prediction markets and limited-risk, options-like instruments. Unlike traditional leveraged derivatives, Outcomes are designed to avoid margin calls and liquidation cascades, a key selling point after recent bouts of market volatility.

This story is an excerpt from the Unchained Daily newsletter.

The feature will run on Hypercore, Hyperliquid’s high-performance execution engine, and is rolling out first on testnet. The team said the contracts are a general-purpose building block, leaving room for developers to experiment with applications beyond simple prediction markets.

The announcement landed well with traders. HYPE rose about 7% in 24 hours, extending a strong run that has seen the token gain more than 30% over the past week, even as bitcoin fell sharply.

Momentum has been building since Hyperliquid’s HIP-3 upgrade unlocked permissionless markets tied to real-world assets like equities, gold, and FX. With prediction markets booming across crypto, HIP-4 positions Hyperliquid to compete in one of the sector’s fastest-growing niches.

If you want to learn more about HYPE’s recent run and whether it can be sustained, we covered that extensively in an article last week: