UMA Optimistic Oracle Integration
ProbiFi is building toward decentralized market resolution using the UMA Optimistic Oracle (OO), a system designed to securely and permissionlessly resolve real-world event outcomes through economic incentives and dispute-based consensus.
This oracle will allow ProbiFi to resolve prediction markets launched on Kaspa Layer 2 EVMs, such as Igra or Kasplex, without relying on centralized authorities.
Overview: How UMA’s Oracle Works
The Optimistic Oracle allows smart contracts to request off-chain data (like election results or asset prices) and receive proposed values, which can be disputed within a time-bound window.
If no one challenges the proposed value, the resolution is finalized automatically. If a dispute is raised, UMA’s decentralized voting system, called the Data Verification Mechanism (DVM), decides the correct outcome through tokenholder governance.
Key features:
Fast and cost-efficient resolution for undisputed answers
Fully decentralized escalation process if a dispute arises
Oracle data is human-readable and based on verifiable sources
You can read more in the official UMA Oracle Docs or explore the UMA Oracle Portal.
Resolution in ProbiFi Markets
Markets on ProbiFi will be resolved using a customized version of UMA’s infrastructure. ProbiFi plans to deploy an adapter contract (like UMA’s UmaCtfAdapter) on Kaspa EVMs, allowing prediction markets to interface with UMA's oracle flow.
Each market includes:
Ancillary Data: A text-based summary of the question, clarifications, and expected resolution criteria
Reward Token: The token (e.g.,
KAS) used to pay out rewards and feesProposal Bond: A stake required to propose or dispute outcomes (default: ~$750 equivalent in
KAS)Liveness Period: The amount of time (in seconds) others have to dispute a proposal before it finalizes
The Resolution Lifecycle
1. Initialization A binary prediction market is initialized via ProbiFi’s adapter contract, storing key resolution details and preparing the oracle query.
2. Propose Outcome Anyone can propose an outcome to the Optimistic Oracle by posting the required bond. If the liveness period passes without challenge, the outcome is finalized and winning shares can be redeemed.
3. Dispute Outcome If another user believes the proposal is incorrect or premature, they can dispute it by posting an equivalent bond. This escalates the outcome to UMA’s DVM for decentralized voting by UMA tokenholders.
Multi-Step Resolution Flow
To improve resistance against griefing and low-quality proposals, ProbiFi will implement a two-stage escalation flow. This doubles the cost for attackers while still allowing honest proposers to resolve markets efficiently.
Possible resolution paths:
Initialize → Propose → ResolveInitialize → Propose → Dispute → Propose → ResolveInitialize → Propose → Dispute → Propose → Dispute → Resolve
This layered flow ensures that only well-supported outcomes are finalized, and far-fetched proposals are filtered early without slowing down valid resolutions.
Clarifications in Resolution
Markets may include clarifying notes issued by the ProbiFi team via a bulletin board-like mechanism within the adapter contract. This is useful in edge cases where a question's interpretation needs minor updates after launch, without changing its intent.
Ancillary data will include lines such as:
“Updates made by the market creator via the on-chain bulletin board at [contract address] should be considered.”
These clarifications are visible on-chain and do not alter the fundamental meaning of the question.
Deployment Status
UMA has not yet been deployed on Kaspa EVMs, but ProbiFi is actively initiating outreach to bring UMA to the Kaspa ecosystem. When deployed, ProbiFi’s custom adapter will be deployed to Kaspa Layer 2s with full UMA compatibility.
Until then, ProbiFi markets will use a temporary multisig-based resolution process governed by trusted actors, with a clear roadmap to transition into full oracle-based resolution.
Additional Resources
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