(Bloomberg) -- Decentralized exchange Hyperliquid is preparing to launch prediction markets, taking aim at established players like Polymarket and Kalshi with a zero-fee model in the fast-growing $63.5 billion event-betting sector.
"Sophisticated traders will be able to take advantage of portfolio margin and figure out ways to generate alpha from these two different market types," said Sunny Shi, an investor at crypto fund Syncracy Capital. "A way that you wouldn’t be able to see like on Polymarket or Kalshi, where today most of it is just betting."
The proposal, known as HIP-4, introduces binary outcome tokens that would allow traders to bet on real-world events. The key detail in the published fee structure is that opening a position costs nothing; fees are only applied when closing or settling a trade. The model also provides incentives for traders using Hyperliquid's "aligned quote tokens," offering 20% lower taker fees and 50% higher maker rebates. The feature is currently on testnet with no mainnet date confirmed.
The move is significant as it integrates event-based contracts within the same system as Hyperliquid's popular perpetual futures, which handled $219 billion in total volume in March. This allows a single user to manage positions on real-world events, Bitcoin, and oil from one account—a multi-asset integration that competitors are also racing to build. Polymarket, for instance, has said perpetuals trading is "coming soon" to its platform.
Hyperliquid's expansion makes it a credible threat to incumbents. The platform has rapidly added contracts linked to oil, gold, and US equities, building a reputation for fast product development. While Polymarket and the CFTC-regulated Kalshi have focused on winning regulatory legitimacy in the US, Hyperliquid operates as an offshore, decentralized exchange that restricts US users. This allows for faster innovation and access for users in markets that US platforms do not serve.
Analysis by on-chain researcher Fleck shows a significant overlap between the platforms' most active users. While only 3.3% of Polymarket users are also active on Hyperliquid, this cohort accounts for about 12% of Polymarket’s total volume, suggesting Hyperliquid's new product will have immediate distribution to a key power-user demographic. Backed by firms including Paradigm and Pantera Capital, Hyperliquid is betting that its integrated, high-speed, and unregulated approach can carve out a significant share of the burgeoning prediction market space.
This article is for informational purposes only and does not constitute investment advice.
