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Hyperliquid wants more prediction markets on its network, though its planned HYPE▲$70.78 staking requirement makes that an expensive opportunity.
Hyperliquid, an on-chain network best known for its perps crypto exchange, plans to let third-party developers deploy prediction markets on HyperCore, its on-chain trading engine, in a future network upgrade, according to a post in its announcement channel on Telegram.
Each blockchain developer will need to stake 500,000 HYPE, worth roughly $30 million at current market prices, per data from Bitcoin Foundation’s price tracking page. A similar capital barrier already applies to HIP-3, Hyperliquid’s framework for builder-deployed perpetual futures.
The permissionless rollout will begin on testnet before moving to mainnet, per the post. The Hyperliquid team didn’t provide a timeframe and said the proposed specifications may change following feedback.
Read also: Is Hyperliquid (HYPE) Ready for a New All-Time High? Top 5 Catalysts That Could Send HYPE Soaring
How HYPE Stake Will Be Used
The stake will be locked for six months and can be slashed through a vote by validators, network operators that participate in transaction processing and protocol governance, if a market is poorly defined, settled incorrectly or remains incorrectly unsettled for more than a week.
Developers must also settle all their markets before withdrawing the stake. That requirement could keep their HYPE locked beyond six months if they list questions tied to events years into the future. The team added:
“Permissionless deployments are especially important for the growth of outcome markets. The possible universe of tradeable outcomes is vast.”
From Validator Markets to Permissionless Deployment
HIP-4, Hyperliquid’s framework for outcome contracts used by prediction markets, went live on mainnet earlier in May. Its first products were recurring markets tied to the price of Bitcoin.
Until now, validators have controlled the rollout. Recurring crypto markets are deployed automatically, while validators have directly added questions about inflation, decisions by the Federal Reserve, the U.S. central bank, and sports.
Hyperliquid now plans to let outside developers create markets too, though the system won’t be fully open. Developers can launch individual questions without a separate validator vote, although they must use templates that validators have already approved.
As of press time, Hyperliquid has only 27 active validators, the operators securing HyperCore and HyperEVM, its smart-contract layer, through HyperBFT, its consensus system.
They will still choose the templates and can slash a developer’s stake over poorly defined or incorrectly settled markets, making HIP-4 permissionless for individual deployments but still curated at the rule-setting level.
Source: bitcoinfoundation.org