Hyperliquid Improvement Proposal 4 (HIP-4) introduces Event Perpetuals, representing a significant evolution in decentralized prediction market architecture. The current HIP-3 framework, relying on continuous oracle updates and constrained by a 1% per tick price change, presents operational inefficiencies. This structural limitation renders binary event resolution impractical and creates identifiable arbitrage vectors. Event Perpetuals address these systemic challenges by eliminating continuous oracle feeds and associated funding payments.
This new protocol determines prices solely through trading activity, fostering a more organic price discovery mechanism. The contracts settle with binary payoffs, reflecting market-implied probabilities between 0 and 1, resolving instantly upon event conclusion. This mechanism significantly enhances the system’s responsiveness and precision, offering a superior operational environment for event-based derivatives. The implementation of 1x isolated margin further aligns risk exposure with potential loss, reinforcing capital efficiency within the market structure. This strategic enhancement aims to cultivate deeper liquidity and attract sophisticated institutional participation by mitigating current infrastructural friction points.
The introduction of Event Perpetuals on Hyperliquid fundamentally re-architects prediction market mechanics, enabling precise, rapid binary event settlement and enhancing market integrity.
- Proposal Identifier ▴ Hyperliquid Improvement Proposal 4 (HIP-4)
- Primary Architect ▴ John Wang, Head of Crypto at Kalshi
- Key Mechanism ▴ Event Perpetuals with binary payoffs
Signal Acquired from ▴ CryptoSlate
