Hyperliquid Tests Outcome Trading as Prediction Markets Heat Up

TheNewsCryptoPublished on 2026-02-03Last updated on 2026-02-03

Abstract

Hyperliquid is expanding into prediction markets with a new product called outcome trading, designed to offer event-based contracts without leverage or liquidation risks. This initiative, proposed under HIP-4, uses fully collateralized contracts structured within fixed ranges to support prediction markets and bounded options-style trading. The feature, currently in testnet, will rely on objective settlement sources and be denominated in USDH. The move comes as prediction markets gain regulatory attention, with the CFTC preparing new rules. Competitors like Polymarket have already attracted significant activity, and recent regulatory approvals are reshaping the competitive landscape among major crypto platforms.

Hyperliquid is planning to set its foot into prediction markets, rolling out a new product known as outcome trading that guarantees to open the door to event-based contracts without the leverage and liquidation mechanics that influence the crypto derivatives.

On January 2, Hyperliquid posted on X, saying that its main engine, HyperCore, will back outcome trading under a proposal said to be HIP-4, structuring outcomes as completely collateralised contracts that sit down within a fixed range and can boost prediction markets and bounded options-style trades.

Hyperliquid mentioned that outcomes target putting up non-linearity and dated contracts while proposing a form of derivatives trading that does not depend on leverage or liquidations.

It also placed the feature as a factor that can operate in company with portfolio margin and HyperEVM, indicating a push to broaden what developers can make on top of the pile. As of the current scenario, the firm mentioned that the feature is still in testnet, with canonical markets planned after technical work concludes.

The Transformed Competitive Landscape

Hyperliquid further went on to mention that those initial markets will depend on objective settlement sources, be termed in USDH and may further widen to unauthorised deployment relying on user feedback.

The timing matters, as prediction markets are shifting from the periphery to the regulatory agenda. The Chairman of the Commodity Futures Trading Commission, Michael Selig, revealed last week that the agency is all set with a new rulebook for prediction markets, as platforms like Polymarket and Kalsi have captivated billions in activity after allowing users to trade yes or no outcomes over politics, pop culture and more.

This regulatory shift has so far transformed the competitive landscape. Polymarket has once again entered the US market after it got approval from the CFTC via an amended order of designation, an action that could make event contracts a new engagement tool for prominent crypto platforms like Coinbase, as reported in a Clear Street report by analyst Owen Lau.

Highlighted Crypto News Today:

Ethereum Treasury Firm BitMine Faces $7B Unrealized Loss Amid Crypto Downturn

Crypto treasury firm ZeroStack warns of survival risk amid $82.5M loss

Nasdaq-listed crypto treasury firm ZeroStack has warned there is "substantial doubt" about its ability to continue operating over the next year, reversing its assessment from just three months prior. The company reported an $82.5 million fair value loss on digital assets and a net loss of $61.3 million for the first half of 2026. As of June 30, it held $2.6 million in cash, had negative working capital, and an accumulated deficit of $339.1 million. A key issue is the drastic devaluation of its 75.1 million Zero Gravity (0G) tokens, which had a fair value of only $15.2 million against a recorded cost of $163.3 million—a 91% decline. ZeroStack relies on staking rewards and token sales to fund operations, making its liquidity heavily dependent on the price and trading liquidity of 0G. While it earned $3.8 million in staking revenue and sold tokens for $2.4 million in the first half of the year, management stated it cannot conclude these plans will be enough to ensure survival. The company, formerly cannabis firm Flora Growth, rebranded after announcing a $401 million 0G treasury strategy in September. Its latest filing marks a stark reversal from its previous quarter's assertion that its resources were sufficient for at least another year.

cointelegraph27m ago

Crypto treasury firm ZeroStack warns of survival risk amid $82.5M loss

cointelegraph27m ago

XRP Ledger v3.2.1 Hotfix Targets Validator Manifest Flooding

The XRP Ledger (XRPL) team has released a hotfix, version xrpld v3.2.1, addressing an issue of validator manifest flooding that caused high memory and bandwidth consumption on affected nodes. While the problem did not disrupt network consensus or global transaction processing, it created significant resource pressure on individual nodes, posing a stability risk. The fix, released on July 31, 2026, is crucial for maintaining node reliability and preventing potential performance degradation or increased operational costs. Operators are urged to upgrade promptly and perform a required double restart to fully apply the patch. The incident underscores the ongoing importance of operational stability and swift response to vulnerabilities, even in non-catastrophic scenarios, for the health of the blockchain infrastructure.

bitcoinist31m ago

XRP Ledger v3.2.1 Hotfix Targets Validator Manifest Flooding

bitcoinist31m ago

CLARITY Act Faces Senate Deadline After Missing Monday Schedule

The CLARITY Act, a major cryptocurrency market structure bill, faces a critical deadline after being omitted from the U.S. Senate's Monday schedule. Supporters are now racing against the clock to advance the legislation before Congress's August recess, shifting focus from policy debates to complex Senate procedures. With no official legislative process scheduled, the bill's immediate fate depends on procedural maneuvers. For a key "cloture" vote to occur by Friday, Senate leadership must file a petition with at least 16 signatures by Wednesday. Even if successful, Senate rules allow for 30 hours of debate before a final vote, though leadership could pursue faster options like a bipartisan petition or unanimous consent—which any single senator can block. Political backing remains uncertain. Negotiations between Republicans and Democrats are ongoing, with seven Democratic negotiators stating a new draft still does not meet their approval. Senator Elizabeth Warren opposes the current version, and Majority Leader John Thune is reportedly only willing to schedule a procedural vote if sufficient Democratic support is secured before the recess.

TheNewsCrypto32m ago

CLARITY Act Faces Senate Deadline After Missing Monday Schedule

TheNewsCrypto32m ago

Bitcoin Short-term Adjustment Continues, HYPE Approaches Critical Support | Guest Analysis

This article provides a technical analysis of Bitcoin (BTC) and HYPE for the current week. For Bitcoin, the daily chart suggests an ongoing b-wave correction within a larger pattern since the May high, currently testing the $60,900-$61,500 support zone. The analysis outlines that if this area holds (with the critical level at $57,820), a potential c-wave rally towards $67,300 could follow. Key resistance levels are identified at $63,600, $65,700-$67,300, and $69,500-$71,000. The author presents both mid-term and short-term trading strategies, including two specific short-term plans (Plan A and B) for potential long entries based on support holds or breaks above resistance. Regarding HYPE, the daily chart indicates it is in the final stages (C-wave) of a correction from its June high, now approaching a crucial support zone of $50-$52. The analysis notes oversold conditions and warns against chasing the downtrend, instead advising to watch for signs of a stabilizing bounce (potential D-wave). Key resistance levels are $58.5-$60, $63.5-$66, and near $72.97. The short-term strategy suggests considering a light long position if the $50-$52 support holds. The article also includes a verification of last week's analysis, noting that BTC's price action aligned with predictions, and details a successful short-term BTC short trade that yielded approximately 2.58% profit using proprietary trading models. General risk management rules for stop-loss placement are reiterated. The author concludes by emphasizing that all analysis is for personal trading purposes and does not constitute investment advice.

Odaily星球日报41m ago

Bitcoin Short-term Adjustment Continues, HYPE Approaches Critical Support | Guest Analysis

Odaily星球日报41m ago

Coldcard Attack Escalates: Fourth Wave Pushes Bitcoin Theft Past $90 Million

The Coldcard hardware wallet attack has escalated into a major security crisis, with estimated thefts now exceeding $90 million from over 4,500 wallets. The flaw, present in Mk3 devices running firmware v4.0.1 to v5.0.3, resulted in seed phrases with lower entropy, making them predictable. A confirmed fourth wave of attacks recently stole approximately 448.73 BTC from 709 addresses over a 2.5-hour period. Manufacturer Coinkite has destroyed vulnerable inventory, halted shipments, and released patched firmware. However, the update only secures newly generated seeds; wallets created on the vulnerable firmware remain at high risk and require immediate migration of funds. The company has suggested alternative wallets and asked affected users to retain their devices for potential recovery efforts. This incident severely damages trust in a leading cold storage solution.

TheNewsCrypto1h ago

Coldcard Attack Escalates: Fourth Wave Pushes Bitcoin Theft Past $90 Million