Hyperliquid has confirmed it will introduce "outcome contracts" to build prediction markets and option-like derivatives.

Hyperliquid announced in an X post that it will introduce "outcome contracts" trading in HIP-4. Outcome contracts are fully collateralized contracts that settle within a pre-defined range. It's a general-purpose primitive applicable to scenarios such as prediction markets and range-bound options-like instruments. These applications already have significant user demand, and developers are likely to devise more novel use cases based on this primitive. Outcome contracts introduce non-linear payoff structures, expiring contracts, and an alternative form of derivatives trading that doesn't involve leverage or liquidation mechanisms. This primitive expands the expressive power of HyperCore and can be combined with other primitives such as combined margin mechanisms and HyperEVM. Outcome contracts are currently under development and are only being tested on the testnet. Once the technology is fully developed, canonical markets based on objective settlement sources will be deployed, denominated in USDH. After collecting user feedback, the infrastructure will be further expanded to a permissionless deployment model.