Hyperliquid launches testnet for trading results, predicting a new model for prediction markets that could reshape the on-chain derivatives landscape

On February 3rd, the decentralized derivatives platform Hyperliquid announced the launch of its “Result Trading” feature on the testnet, introducing a full-margin contract model for prediction markets and event trading. This feature is based on Hyperliquid’s improvement proposal HIP-4, allowing users to trade contracts linked to real-world outcomes within a fixed price range, with automatic settlement after the event concludes.

“Result Trading” primarily targets uncertain events such as elections, sports competitions, and macroeconomic data. Unlike traditional crypto derivatives, these contracts do not use leverage; traders must fully fund their positions, thereby avoiding systemic risks associated with forced liquidations and chain reactions of margin calls. The platform states that this design makes event trading more transparent and better suited for users seeking to avoid high-leverage volatility.

Mechanically, result trading introduces nonlinear profit curves and time-based settlement methods, enabling traders to more flexibly express their judgments about the event’s outcome. It can also be used in conjunction with Hyperliquid’s existing portfolio margin system and HyperEVM, allowing developers to embed result contracts into other decentralized applications and expand strategic combinations.

Currently, this feature is only available on the testnet and is under continuous optimization. The team has revealed that after testing, a series of “standardized” markets will be launched, settled using the platform’s stablecoin USDH, and integrated with objective data sources to reduce dispute risks. If user feedback is positive, permissionless market creation may also be opened in the future, allowing anyone to initiate result-based contracts.

Strategically, this move marks Hyperliquid’s official entry into the prediction market sector. Previously, through upgrades like HIP-3, the platform has supported on-chain trading of tokenized stocks, commodities, and other real-world assets, driving trading volume and open interest to new highs. With the addition of the result trading feature, Hyperliquid is accelerating its transition toward a multi-product on-chain derivatives ecosystem. If the testnet performs as expected, this feature is expected to go live on the mainnet later in 2026, bringing a new competitive landscape to decentralized prediction markets.