According to Arthur Hayes, co-founder of BitMEX and CIO of Maelstrom, Hyperliquid's entry into prediction markets is focused on capturing upside potential rather than just reducing trading costs. The Hyperliquid Improvement Proposal (HIP)-4 introduces event trading with a zero-fee-to-open model, but Hayes believes the real differentiator is the HYPE token, which allows users to profit directly from platform activity.
This sets Hyperliquid apart from competitors like Polymarket and Kalshi, which do not currently offer similar token-based incentives. With a large user base in Asia and a more robust tech infrastructure, Hyperliquid is well-positioned to become a leading prediction market venue. In contrast, Polymarket is expected to launch its own token, while Kalshi's model is built around compliance and licensing, limiting its potential for token-based value accrual.