The HYPE token has shown significant growth in light of the news regarding the support for the HIP-4 proposal by the Hyperliquid team. Over the past day, its value has increased by 12%, reaching a peak of $38.4. At the time of publication, HYPE is trading slightly above $37.
This is reported by Business • Media
Implementation of HIP-4: New Opportunities for the Market
The HyperCore team, responsible for the Layer 1 infrastructure of Hyperliquid, has officially announced support for the HIP-4 proposal. This initiative involves the launch of a new type of fully collateralized contracts with a fixed payout range and a defined duration, known as Outcomes. The implementation of this mechanism opens up the possibility of creating prediction and options markets on the Hyperliquid exchange.
Developers report that there is significant demand for such instruments from users. According to the description of the HIP-4 proposal, Outcomes contracts are referred to as Event Futures. Their price is formed solely based on trading activity, which distinguishes them from traditional perpetual futures. The settlement is conducted through binary payouts that reflect the market probability within a range of 0 to 1. At the same time, the existing infrastructure of HIP-3 does not allow for the realization of similar solutions due to technical limitations regarding price changes.
“Outcomes introduce non-linearity, dated contracts, and an alternative form of trading derivatives that does not involve the use of leverage or liquidation. This mechanism expands the expressiveness of HyperCore, combining with other primitives such as portfolio margin and HyperEVM,” the publication states.
Prospects for Implementation and Impact on HYPE Price
The new type of contracts is currently undergoing testing in the Hyperliquid testnet. The team has not yet disclosed specific timelines for the implementation of the update in the mainnet; however, it is already known that the new markets will be denominated in USDH.
Experts predict that the launch of Outcomes could serve as another catalyst for the growth of HYPE. It is worth noting that in the past, the HYPE token has already demonstrated a notable price increase following the implementation of HIP-3, which allowed users to create their own markets on the platform.
Hourly chart of HYPE/USDT on the KuCoin exchange. Source: TradingView.