Decentralized exchange Hyperliquid is testing a new form of derivatives trading through proposal HIP-4, introducing fully-collateralized outcome contracts that eliminate leverage and liquidation risk. The feature, live on testnet, aims to support prediction markets and range-bound strategies. Amid this development, the exchange’s native HYPE token has shown notable price strength, rising over 11% in 24 hours to approximately $33 as broader cryptocurrency markets face weakness.
Hyperliquid announced its HyperCore trading engine will add outcome-based contracts under proposal HIP-4. The new contracts are fully collateralized, settle within set ranges, and remove leverage and liquidation risks seen in traditional derivatives.
The team described the purpose as creating a flexible financial primitive for new market structures. They plan to launch canonical markets using objective settlement sources and USDH as the settlement currency after development.
DeFi researcher Ignas identified the most attractive part of HIP-4 as its potential composability. “If outcome contracts could offset perpetual contracts, traders would be able to hedge their directional risk while minimizing margins,” he stated.
Ignas noted such composability is absent on current platforms like Polymarket or Kalshi. He also highlighted that permissionless markets might require protection mechanisms tied to staking.
Market reaction has been positive, with HYPE trading at $32.93, an 11.84% increase. Its 24-hour trading volume rose 34.46% to approximately $888.66 million, according to CoinMarketCap data.
Trader Altcoin Sherpa called HYPE one of the strongest performers in current conditions. He expects further consolidation but noted the token has maintained its range better than most alternatives.
