In a Telegram announcement on Monday, blockchain-based perpetuals trading platform Hyperliquid (HYPE) that in a future upgrade, it will bring permissionless deployment for Hyperliquid Improvement Proposal (HIP-4) outcome markets.
Hyperliquid to unveil permissionless outcome markets
According to the announcement, the novel feature will first be introduced on Hyperliquid’s testnet before it is moved into production – or mainnet. The platform dubbed permissionless deployment “especially important” to foster outcome markets.
Notably, Hyperliquid validators are expected to vote on standardized outcome templates to ensure the quality and clarity of prediction markets. These templates will have the necessary specifications stored and enforced on-chain, and will function as the cornerstone for permissionless market deployments.
Subsequently, deployers will be able to rapidly approve templates, and will also be looking after defining and settling individual markets according to the template’s criteria. Hyperliquid added:
“Canonical markets may still be deployed directly by validators from time to time, but these are expected to be rare. These canonical markets will be determined by validator vote, and ideally will represent fewer than 10 outcomes or questions per year.”
It is worth highlighting that the HIP-4 deployers will be required to stake 500,000 HYPE, which can be fully or partially taken away by validator votes during instances of poorly defined markets, incorrect settlement, or failure to settle within a week.
The duration of the stake will be identical to that of HIP-3 – i.e., 6 months. In addition, deployers will be required to settle all outstanding markets before unstaking their HYPE holdings.
Further, each deployer will, at the beginning, be given 200 outcome tokens – or about 100 outcomes. Although multi-outcome questions are expected to consume multiple slots from this allocation, settled outcomes will free up allocation for reuse.
In addition, an auction mechanism to increase allocations is also planned as a follow-up feature.
Investors are leaning long HYPE
Although HYPER has pulled back by 12.1 percent over the past month, the digital asset still enjoys strong confidence among institutions and research firms that foresee it surging to triple-digit prices soon enough.
On Wednesday, HYPE formed a classic bull flag on the daily chart, which suggested that the cryptocurrency is targeting $100 in the short-term. A developing ascending triangle formation on the 3-day chart further supports the bullish tilt.
Institutions are also predicting ambitious price targets for HYPE in the long-term. Multicoin Capital recently forecasted that HYPE could surge to $319 by 2028. In similar news, Bitwise scooped up around $2.4 million worth of HYPE on July 7.
