HYPERLIQUID EYES PREDICTION PERP MARKETS WITH HIP-3

Summary from the TLDR Crypto newsletter

Hyperliquid's proposed HIP-3 design would turn static prediction markets into high-leverage perpetuals with shared liquidity and permissionless market creation. Binary markets like TRUMPWIN (shown in the chart spiking to $1.00) come with severe jump risks at expiry, requiring safeguards like liquidation bands and leverage decay. Scalar markets are safer near-term targets, offering smoother pricing and proportional losses and paving the way for a new class of high-frequency event-based trading.