Hyperliquid rolled out an upgrade Monday that cuts out third-party oracles for prediction markets, instead letting its validator network serve as the source of truth for event outcomes. The HIP-4 update, now live on mainnet, reworks how the platform determines the results of contracts tied to real-world events — shifting that responsibility entirely to Hyperliquid's own infrastructure.
Why the oracle role changed
Previously, Hyperliquid relied on external oracles to feed outcome data into prediction markets. Under HIP-4, that job goes to the validator set. The validators vote on which markets to deploy and how to settle them, weighing both unambiguous rules and more subjective quality checks. The system uses automated newsfeed software to link markets to off-chain events, creating what the team calls 'canonical outcome markets.'
Hyperliquid developer Yaigourth framed the move as a direct contrast to how rivals handle the same problem. Polymarket uses UMA's optimistic oracle, where outcomes can be challenged during a dispute window. Kalshi runs a centralized model. Hyperliquid's approach puts validators — the same nodes that secure the network — in charge of outcome verification. 'The validator set is the oracle,' Yaigourth said.
What's live on mainnet right now
The update went live as a limited-feature initial release on May 2, 2026. For now, only two markets are trading on mainnet, both launched directly by the Hyperliquid team. Fully permissionless market creation isn't available yet — the team hasn't said when outside users will be able to deploy their own contracts without approval.
FalconX, a crypto prime brokerage, noted that traders can view and trade event contracts around the clock alongside spot and perpetual positions. Cross-margining between those products could free up capital, the firm said, since users won't need to segregate collateral for each type of trade.
Token near its peak
Hyperliquid's native token HYPE was trading at $61.93 at the time of the announcement, roughly 4% below the all-time high of $64 reached over the previous weekend. The token has been buoyed by the broader market's appetite for on-chain derivatives infrastructure, though the prediction market feature is still in its earliest days.
The question now is when the team will open the floodgates to permissionless markets. Without that step, the current two-contract offering is little more than a proof of concept. The HIP-4 documentation doesn't specify a timeline for that next phase, leaving traders and developers waiting for a signal on when they can build their own event contracts directly on Hyperliquid.
