4 authors submitted Hyperliquid Enchancment Proposal 4 (HIP-4) on Sept. 16, introducing “Occasion Perpetuals” to allow prediction markets on the platform’s order ebook infrastructure.
The proposal lists Kalshi’s head of crypto, John Wang, amongst its 4 co-authors. The textual content addresses limitations in Hyperliquid’s present HIP-3 builder-deployed perpetuals for prediction market use instances.
The present infrastructure requires steady oracle updates and limits value adjustments to 1% per tick, making binary occasion decision impractical.
Occasion Perpetuals’ objective is to eradicate steady oracle feeds and funding funds, with costs decided solely by buying and selling exercise. The contracts settle with binary payoffs reflecting market-implied possibilities between 0 and 1, resolving immediately to both final result upon occasion conclusion.
The proposal demonstrates present limitations via NFL betting eventualities, the place sportsbook odds replace as step features throughout video games.
Below HIP-3 constraints, settling a market from impartial (0.5) to zero chance would require 50 minutes on account of tick limitations, creating arbitrage alternatives for knowledgeable merchants.
The connected oracle settling chart illustrates the uneven decision downside, exhibiting fast settlement towards 1.0 however gradual decay towards 0, highlighting infrastructure challenges that motivated the brand new proposal.
Public sale mechanism for honest value discovery
Occasion Perpetuals launch via single-price clearing auctions lasting roughly quarter-hour.
The system evaluates all candidate costs to maximise matched quantity, with tie-breaking favoring minimal imbalance and costs closest to 50%.
The clearing mechanism diagram exhibits bid and ask distributions throughout value ranges, with the system calculating optimum clearing costs that stability provide and demand.
Orders execute uniformly on the decided opening value earlier than steady buying and selling begins.
Builders deploy markets by staking 1 million HYPE tokens and might cost as much as 50% extra charges above base charges.
The infrastructure helps market recycling, permitting new occasions to switch resolved markets inside present slots.
Occasion Perpetuals function with 1x remoted margin solely, requiring consumers to deposit collateral equal to their most potential loss.
The proposal concludes that buying and selling happens inside value bands of 0.001 to 0.999, with decision oracles posting remaining values throughout specified problem home windows for dispute decision.