Hyperliquid Unveils No-Loss Trading with HIP-4 Launch

Key Insights:

• HIP-4 introduces fully collateralized, no-liquidation contracts for safer prediction and options trading.
• HYPE token jumps 40% weekly as Hyperliquid expands features with outcome-based market tools.
• HIP-4 adds non-leveraged derivatives to HyperCore, aiming to attract broader trading audience.

Hyperliquid has introduced HIP-4, a new protocol that brings a different type of trading to its platform. According to a recent announcement, the protocol is designed to enable outcome-based contracts on HyperCore, the platform’s main engine.

These contracts are built to settle within a fixed price range and require full collateral upfront. This setup removes the need for leverage and eliminates the risk of liquidation. Hyperliquid stated that HIP-4 can be used for markets like predictions and bounded options, offering a new way to trade without added risk.

HIP-4 Currently Live on Testnet

The new trading feature is still in the testing phase and is not yet available on the main network. Hyperliquid has confirmed that it plans to roll out HIP-4 more widely once technical development is complete and feedback has been reviewed. The exchange also noted that once live, the contracts will be represented in USDH, its native stablecoin.

The platform said it would use external sources to settle these contracts, aiming to make the process as transparent and secure as possible. A future update may allow users to launch their own markets, depending on how the test phase progresses.

HIP-4 Builds on Momentum From HIP-3

HIP-4 follows the earlier launch of HIP-3, a protocol that let users create custom perpetuals by staking HYPE tokens. Activity on HIP-3 has grown steadily, with open interest recently hitting record levels. The platform saw more users trading assets like commodities and equities using the custom market tools introduced through HIP-3.

The addition of outcome trading could bring in a different group of users—those looking for fixed-range and time-bound contracts rather than high-risk, high-leverage positions.

HYPE Token Jumps After Announcement

Following the HIP-4 news, the price of HYPE—the native token of the platform—rose sharply. The token moved from around $30 to over $32 within 24 hours, a gain of more than 12%. It has climbed over 40% in the last week, even as broader market prices have remained under pressure.

Crypto researcher Shaunda Devens shared that this update may expand Hyperliquid’s user base, though added, “Even if HIP-4 captured 100% of Polymarket’s volume, it would add just about 5% to Hyperliquid’s revenue.” Another analyst, Yaugourt, said the DEX now serves both traders who prefer leverage and those who want safer alternatives.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.