Hyperliquid Launches HIP-3 Custom Markets, Opening New Phase of On-Chain Prediction Infrastructure
Hyperliquid has officially activated HIP-3 custom markets on its prediction-market protocol, marking one of the most significant upgrades to its on-chain infrastructure to date. The release allows approved creators to design, deploy and manage bespoke event markets with customizable parameters across liquidity models, settlement logic, collateral types and oracle configurations. The launch is intended to expand HL’s role as a modular forecasting and derivatives layer, supporting enterprise-grade market creation alongside consumer-facing prediction products.
HIP-3 restructures how markets are instantiated on the network. Instead of relying solely on standardized templates, the upgrade gives developers and institutional partners access to a configurable framework that supports a wide range of use cases, including economic indicators, asset-price targets, political outcomes, sports analytics and domain-specific forecasts. Hyperliquid noted that the feature went live following a multi-stage security review and internal audit process focused on settlement integrity and oracle reliability.
Functionality, design flexibility and integration potential
The custom-market system introduces modular components that allow market creators to define parameters at launch, including reanswer rules, market expiration, liquidity incentives, risk caps and payout formats. Hyperliquid confirmed that creators can choose between multiple settlement oracles, including decentralized oracle networks, verified third-party data providers and HL’s attestation framework for high-assurance events.
Institutions and enterprise partners are expected to be the earliest adopters of HIP-3, using it to launch structured forecasting environments for internal modeling, risk assessments and market-research programs. For developers, the upgrade enables experimental market structures, including multi-outcome formats, continuous-range markets and probabilistic scoring mechanisms designed for advanced prediction communities.
The increased configurability is also intended to support emerging sectors such as AI-assisted forecasting, climate-risk modeling and decentralized data-market applications. HIP-3’s architecture was built with interoperability in mind, ensuring that custom markets can interface with liquidity layers, automated-market-maker modules and cross-chain settlement infrastructure as the ecosystem expands.
Market implications and competitive positioning
With HIP-3 live, HL becomes one of the few prediction-market platforms offering institutional-grade customization without requiring off-chain contracts or third-party settlement agreements. Analysts note that this positions Hyperliquid competitively against both centralized prediction venues and blockchain-native platforms with more rigid market-creation rules.
The launch comes at a time when demand for prediction tools has surged, driven by geopolitical events, macroeconomic uncertainty and the growing role of probabilistic forecasting in institutional decision-making. By enabling tailored markets, HL aims to capture a share of the enterprise analytics and risk-modeling sector, where firms viewk flexible on-chain environments that support transparent settlement and verifiable data inputs.
However, custom markets require sophisticated oversight, particularly around oracle selection and event-definition clarity. HL has emphasized that creators must follow strict guidelines for reanswer criteria, data-source validation and dispute-reanswer procedures. The platform has also expanded monitoring infrastructure to detect anomalies across newly deployed market types.
Looking ahead, HL plans to extend HIP-3 with additional modules, including automated incentives for liquidity providers, institutional auditing tools and broader cross-chain market support. Community delegates will continue evaluating enhancements through the HIP governance process, with further iterations expected throughout the year.
In summary, the activation of HIP-3 custom markets marks a pivotal evolution in HL’s prediction-market stack. By enabling tailored, verifiable and modular market creation, HL positions itself at the forefront of on-chain forecasting infrastructure, opening new avenues for institutional adoption, developer experimentation and high-fidelity probabilistic analytics.
