According to Arthur Hayes, co-founder of BitMEX and CIO of Maelstrom fund, Hyperliquid's entry into prediction markets is focused on capturing the upside, not just offering cheaper trading. Hyperliquid is set to introduce a zero-fee-to-open model for event trading under HIP-4, which Hayes believes will quickly become a dominant prediction market due to its large user base, lower trading fees, and robust technology infrastructure. The HYPE token, Hyperliquid's exchange token, allows users to benefit from platform activity, unlike Polymarket and Kalshi.
Hayes noted that users who own the HYPE token can directly profit from their usage of HIP-4, giving Hyperliquid a significant advantage. In contrast, Polymarket is expected to launch a token, and Kalshi's model is built around compliance and licensing, without token incentives. The difference in approach is also reflected in the platforms' geographical presence, with Hyperliquid facing no equivalent constraints in Asia, where its user base is skewed.
The contrast between Hyperliquid, Polymarket, and Kalshi highlights the different strategies employed by each platform, with Hyperliquid's token-based model potentially offering a unique value proposition.