Prediction market OUT has officially become the first decentralized exchange (DEX) reported to run on Hyperliquid’s HIP-4 framework. The launch was confirmed via on-chain transaction footprints on Hyperliquid’s block explorer. Data from a Galaxy Research report shows that HIP-4 products generated $2.38 million in 24-hour volume on their 25th day of operation, accounting for 20% of the combined Bitcoin prediction volume across Hyperliquid and Polymarket during the same timeframe.
The debut HIP-4 product launched on mainnet was a daily Bitcoin binary contract, settled at 06:00 UTC against prices on HyperCore. The HIP-4 system eliminates the funding rate mechanism commonly used in futures trading. All positions must be fully funded upon contract opening, removing forced liquidations mid-trade. The market’s focus later expanded beyond crypto prices to include U.S. CPI inflation contracts (predicting below, exactly, or above 4.3%), Federal Reserve interest rate decisions, and sports match outcomes.
A Half-Million Token Barrier
The HIP-4 framework allows approved contract creators to launch new prediction markets without requiring validator permission for each individual contract. Instead, each deployed market must adhere to a validator-approved template. Despite offering streamlined creation, the upfront capital requirement for operators is steep: they must lock a 500,000 HYPE deposit specifically to run a prediction market. This collateral stands alone and cannot be cross-margined with deposit allocations for HIP-3 perpetual swap products.
The initial $2.38 million volume recorded by HIP-4 was heavily aided by prediction contracts tied to the World Cup tournament. Once the sporting event concluded, trading activity tapered off. A more recent data snapshot from Blockworks shows open interest hovering around $182,000, with cumulative total notional value reaching $881,000.
Unresolved Network Status
Hyperliquid developer documentation updated on August 13 still labels HIP-4 operations as a testnet-only feature. This official documentation tag means OUT’s deployment cannot yet be classified as a fully confirmed permissionless mainnet launch, highlighting a discrepancy between written developer guidelines and real on-chain transactions.
From a regulatory standpoint, OUT does not share the same standing as its competitors. The platform holds no registered Designated Contract Market status from the CFTC like Kalshi, nor has it announced service availability for U.S. users. Between the ambiguous network status and the 500,000 HYPE token deposit requirement, the nascent ecosystem presents steep barriers to entry for independent developers.
Sourced from crypto.news.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
