Hyperliquid expands HIP-4 with validator governed outcome markets

Hyperliquid has expanded HIP-4 to let validators create and settle markets based on real world events, bringing those contracts directly into the network instead of relying on outside oracle providers.

The update allows automated newsfeed software run by validators to publish markets as part of regular chain operations. Validators then vote on deployment and settlement based on factors such as rule clarity, correctness, and market quality.

The move extends HIP-4 beyond onchain price based markets into a broader category of event contracts where outcomes depend on external information. HIP-4 launched on mainnet on May 2, introducing fully collateralized binary contracts that settle based on real world events.

HIP-4 markets are structured as fully collateralized, expiry based contracts that resolve to either 0 or 1 depending on whether an event occurs. The structure gives traders exposure to specific outcomes without leverage or forced liquidations, while keeping execution inside Hyperliquid’s onchain trading environment.

The latest update focuses on the settlement layer. Instead of relying only on external oracle providers for certain offchain events, Hyperliquid said validators can now participate directly in the publication and resolution process through onchain votes. That creates a closed loop design where the same validator set securing the network also helps determine canonical market outcomes.

HYPE was last trading 1% lower on the day near $62, though the token remains up more than 36% over the past week and over 50% in the last 30 days.