Hyperliquid has broadened its HIP-4 prediction markets beyond just cryptocurrency price forecasts to include significant macroeconomic events, such as U.S. inflation reports and Federal Reserve interest rate decisions. This development increases competition with established prediction market platforms like Polymarket.

This decentralized exchange now enables users to trade prediction-based contracts in addition to cryptocurrency perpetual futures within a unified account, reinforcing Hyperliquid’s ambition to evolve into a comprehensive multi-asset trading platform.

This update signifies a departure from Hyperliquid’s earlier testing phase, which was primarily concerned with outcomes native to cryptocurrency, focusing on scenarios like whether Bitcoin would reach a specified price before a designated deadline.

The new expansion features contracts that relate to off-chain occurrences, encompassing releases of macroeconomic data and central bank decisions.

What distinguishes Hyperliquid’s offering is the fact that HIP-4 incorporates its own mechanisms for dispute resolution and settlement, eliminating reliance on external oracle networks such as those employed by Polymarket.

In contrast to Polymarket, which uses UMA for resolving disputes, Hyperliquid accomplishes settlements through its proprietary validator network. These validators utilize automated newsfeed tools to process external data, decide which markets are activated, and vote on the outcomes of settlements.

Polymarket’s UMA-dependent optimistic oracle framework allows proposed settlements to stand unless contested, followed by a vote among UMA token holders on the final decision. This system has been criticized following contentious resolutions and allegations that substantial token holders could unduly influence results.

Hyperliquid’s outcome markets are structured as fully collateralized Yes-or-No contracts that resolve at either 1 USDC or zero, depending on the actual event outcome. In contrast to leveraged perpetual futures that may lead to liquidations, traders’ losses here are limited to what they initially invested in a contract.

This design places the product at the intersection of traditional prediction markets and simplified binary options, giving traders the ability to speculate on macroeconomic or event-driven outcomes while also managing crypto derivatives from a single platform.

A recent report from FalconX suggests that Hyperliquid’s expanding suite of products could position it as a potential contender against both crypto-native rivals and conventional stock exchanges.