The price of the HYPE token increased by 12% over the past day, reaching a peak of $38.4. This rise coincided with the Hyperliquid team’s announcement of the commencement of testing for the HIP-4 proposal on the platform’s test network.
This is reported by Finway
New Type of Contracts and Launch of Prediction Markets
The HIP-4 update introduces an innovative type of outcome-based contracts, which will allow the creation of new prediction and options markets on Hyperliquid. From now on, users will be able to trade these instruments without using leverage or facing liquidation, thereby expanding the platform’s functionality.
At the time of writing, the HYPE token is trading slightly above $37. Data from TradingView indicates high trading activity, which has contributed to the rapid price increase.
Details of the HIP-4 Proposal and Its Impact on the Ecosystem
According to an official statement from the developers of HyperCore (the layer one infrastructure of Hyperliquid), the support for HIP-4 is driven by the growing demand from users for new financial instruments. The proposal includes the launch of fully collateralized contracts with a limited range of payouts and terms, referred to in the description as Event Futures.
Unlike perpetual futures, the price of Event Futures is determined solely by trading activity. The calculation is made using binary payouts that reflect market probabilities from 0 to 1. The previous HIP-3 infrastructure did not effectively support such markets due to technical limitations.
“Outcomes introduce non-linearity, dated contracts, and an alternative form of trading derivatives that does not involve leverage or liquidation. This mechanism enhances the expressiveness of HyperCore, combining with other primitives such as portfolio margin and HyperEVM,” the publication states.
Currently, the new type of contracts is undergoing testing on the Hyperliquid testnet, and the launch date on the mainnet has yet to be announced. It is known that all new markets will be denominated in USDH.
Experts note that the implementation of HIP-4 could become the next driver for HYPE’s growth. It is worth reminding that the previous HIP-3 update already provided the HYPE token with positive dynamics due to users’ ability to create their own markets on the platform.