Kalshi exec submits Hyperliquid improvement proposal to solve prediction market deployment challenges

Four authors submitted Hyperliquid Improvement Proposal 4 (HIP-4) on Sept. 16, introducing “Event Perpetuals” to alteration prediction markets connected the platform’s bid publication infrastructure.

The connection lists Kalshi’s caput of crypto, John Wang, among its 4 co-authors. The substance addresses limitations successful Hyperliquid’s existing HIP-3 builder-deployed perpetuals for prediction marketplace usage cases.

The existent infrastructure requires continuous oracle updates and limits terms changes to 1% per tick, making binary lawsuit solution impractical.

Event Perpetuals’ extremity is to destruct continuous oracle feeds and backing payments, with prices determined wholly by trading activity. The contracts settee with binary payoffs reflecting market-implied probabilities betwixt 0 and 1, resolving instantly to either result upon lawsuit conclusion.

The connection demonstrates existent limitations done NFL betting scenarios, wherever sportsbook likelihood update arsenic measurement functions during games.

Under HIP-3 constraints, settling a marketplace from neutral (0.5) to zero probability would necessitate 50 minutes owed to tick limitations, creating arbitrage opportunities for informed traders.

The attached oracle settling illustration illustrates the asymmetric solution problem, showing accelerated colony toward 1.0 but gradual decay toward 0, highlighting infrastructure challenges that motivated the caller proposal.

Oracle terms colony shows asymmetric timing, with upward question from 0.5 to 1.0 occurring rapidly portion downward colony requires astir 50 minutes. Image: HIP-4

Auction mechanics for just terms discovery

Event Perpetuals motorboat done single-price clearing auctions lasting astir 15 minutes.

The strategy evaluates each campaigner prices to maximize matched volume, with tie-breaking favoring minimal imbalance and prices closest to 50%.

The clearing mechanics diagram shows bid and inquire distributions crossed terms levels, with the strategy calculating optimal clearing prices that equilibrium proviso and demand.

Auction mechanics diagram shows bid-ask bid matching crossed terms levels, with optimal clearing terms of $0.50 maximizing matched measurement astatine 270 contracts. Image: HIP-4

Orders execute uniformly astatine the determined opening terms earlier continuous trading begins.

Builders deploy markets by staking 1 cardinal HYPE tokens and tin complaint up to 50% further fees supra basal rates.

The infrastructure supports marketplace recycling, allowing caller events to regenerate resolved markets wrong existing slots.

Event Perpetuals run with 1x isolated borderline only, requiring buyers to deposit collateral adjacent to their maximum imaginable loss.

The connection concludes that trading occurs wrong terms bands of 0.001 to 0.999, with solution oracles posting last values during specified situation windows for quality resolution.

The station Kalshi exec submits Hyperliquid betterment connection to lick prediction marketplace deployment challenges appeared archetypal connected CryptoSlate.