Announcing the Pragma Optimistic Oracle

We're thrilled to announce the release of version 1 of our optimistic oracle on Starknet. This new service is accessible at https://pragma.build/optimistic and is available for permissionless use on testnet, with a private alpha on mainnet. If you're interested in early access to the mainnet version, please reach out to us. We're excited to share that two protocols, Raize and Enigma—both prediction markets built on Starknet—have already announced their integration with our optimistic oracle.

What's an Optimistic Oracle, and Why This New Addition?

At Pragma, our mission is to empower dApp developers with secure and trustless on-chain data. While our existing product offerings primarily targeted DeFi applications, securing hundreds of millions of dollars through price and market feeds, we recognized a gap in alternative data provision. The launch of our optimistic oracle addresses this need, enabling any kind of binary outcome and alternative data to be posted and verified on-chain.

This expansion opens up new possibilities beyond traditional DeFi applications. While prediction markets are the first use case, with two high-quality integrations already in place, we anticipate many more applications, particularly in betting and bridging.

How It Works

An optimistic oracle enables data to be posted on-chain in an optimistic manner. Here's a simplified explanation of the process:

1. Assertion Posting: An assertion (e.g., "Donald Trump is the winner of the 2024 US elections") is posted on-chain along with a bond (e.g., $500) and a dispute period (e.g., 2 hours).
2. Settlement: Once the result of the assertion is known, anyone can settle the assertion as true or false, also putting up a bond.
3. Dispute Period: A dispute period begins, during which anyone can challenge the settlement result.
4. Resolution:
   • If unchallenged, the settlement is accepted as truth on-chain.
   • If disputed, an escalation mechanism (chosen by the assertion poster) is triggered.
5. Escalation: We support various escalation mechanisms, including multisig, token voting, or human-verified voting.
6. Final Answer: After the escalation period, a final answer is provided. The incorrect answer is penalized (slashed), and the correct one is accepted as the final truth on-chain.

Here's a (simplified) visual representation of the different states:

Integration and Support

We're eager to assist protocols in integrating our optimistic oracle. Whether you need guidance on the integration process or help determining the best dispute resolution method for your protocol, our team is here to help. Feel free to reach out to us on Telegram, Twitter, or Discord for support.

By leveraging Pragma's optimistic oracle, you can enhance your protocol with reliable, on-chain data for a wide range of use cases beyond traditional finance.

Join the conversation! Follow Pragma on Twitter for updates, and connect with our community on Telegram.

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