Introduction

Why Optimistic Oracle?

Traditional oracle solutions face three fundamental challenges: the Oracle Trilemma of security, speed, and cost. Most protocols force you to choose two out of three. Optimistic Oracle breaks this paradigm.

Vision

Our vision is to become the de facto standard for decentralized data verification across the Solana ecosystem and beyond. We're building infrastructure that makes bringing real-world data on-chain as simple and reliable as reading from a smart contract.

The future of DeFi, prediction markets, insurance, supply chain, and countless other blockchain applications depends on reliable oracles. Optimistic Oracle aims to be the bridge that connects the digital and physical worlds with unprecedented efficiency and security.

Technical Architecture

Optimistic Oracle is architected as a modular protocol with three core layers:

1. Data Request Layer

Smart contracts create data requests with parameters including:

• Question/Query: The data being requested
• Reward Amount: Payment for correct data provision
• Bond Amount: Collateral required from data providers
• Challenge Period: Time window for disputes
• Expiry Timestamp: Deadline for data submission

2. Proposal & Verification Layer

Data providers (proposers) submit answers by:

1. Staking the required bond amount in SOL
2. Submitting their answer/data
3. Entering the challenge period where anyone can dispute

The economic model ensures honesty:

Cost of lying > Potential gain
Bond at risk + Reputation loss > Reward amount

3. Dispute Resolution Layer

If a proposal is challenged:

• Challenger stakes a bond equal to the proposer's bond
• Dispute is escalated to resolution mechanism
• Correct party receives both bonds plus rewards
• Incorrect party loses their bond

How It Works

The Optimistic Oracle Workflow

Step 1: Request Creation

// Example: Create a price oracle request
const request = await oracle.createRequest({
  question: "What is the ETH/USD price at 12:00 UTC?",
  rewardAmount: 0.1 SOL,
  bondAmount: 0.05 SOL,
  challengePeriod: 1 hour,
  expiryTime: 12:00 UTC + 5 minutes
});

Step 2: Answer Proposal

// Proposer submits answer with bond
await oracle.proposeAnswer({
  requestId: request.id,
  answer: "$2,450.32",
  bond: 0.05 SOL
});
// Answer enters challenge period

Step 3: Challenge or Accept

During the challenge period:

• If no challenge: Answer is accepted as truth after challenge period
• If challenged: Dispute resolution begins

Step 4: Resolution

// After challenge period expires
const finalAnswer = await oracle.resolveRequest(requestId);
// Proposer receives reward + bond back
// Data is now available on-chain

Economic Incentives

Actor	Incentive	Risk
Honest Proposer	Reward + Bond returned	Time-locked capital
Dishonest Proposer	Temporary reward claim	Bond slashed + Reputation loss
Challenger	Winning reward + Slashed bond	Bond at risk if wrong
Requester	Accurate data	Reward payment

Security & Transparency

Optimistic Oracle implements multiple layers of security:

1. Economic Security

• Bond Mechanism: Proposers risk losing bonded capital
• Challenge Stakes: Challengers also risk capital, preventing frivolous disputes
• Graduated Penalties: Repeat offenders face increased bond requirements

2. Cryptographic Security

• Solana's Proof of History: Immutable timestamp verification
• Program Derived Addresses (PDAs): Deterministic account generation
• CPI Security: Cross-program invocation guards against reentrancy

3. Transparency

• All proposals are publicly visible on-chain
• Complete audit trail of all decisions
• Open-source smart contracts
• Real-time monitoring dashboards

Oracle Applications

Optimistic Oracle is a general-purpose oracle protocol supporting diverse use cases:

1. Prediction Markets

• Sports betting outcomes
• Political election results
• Economic indicator predictions
• Cryptocurrency price movements

2. DeFi Price Feeds

• Real-time asset pricing for lending protocols
• DEX price oracles
• Liquidation trigger mechanisms
• Yield farming APY calculations

3. Insurance & Parametric Contracts

• Weather data for crop insurance
• Flight delay verification
• Natural disaster triggers
• Smart contract exploit detection

4. Supply Chain & IoT

• Product authenticity verification
• Shipment tracking and delivery confirmation
• Temperature/humidity monitoring for perishables
• Quality assurance data

5. Gaming & NFTs

• Verifiable random number generation
• Tournament results verification
• Real-world event triggers for in-game assets
• Cross-chain NFT metadata

6. Governance & DAOs

• Vote outcome verification
• Proposal execution triggers
• Treasury management data
• Milestone completion verification

OPTIM Token

The OPTIM token is the native utility token of the Optimistic Oracle ecosystem, serving critical functions for protocol operation, security, and governance.

Token Utility

1. Staking for Dispute Resolution

OPTIM token holders can stake their tokens to become Dispute Resolvers:

• Resolvers vote on disputed proposals
• Earn fees from dispute resolutions
• Slashed if voting dishonestly (measured against consensus)
• Higher stakes = more voting power and higher rewards

2. Protocol Governance

OPTIM holders govern protocol parameters:

• Minimum bond requirements
• Challenge period durations
• Fee structures
• Dispute resolution mechanisms
• Treasury allocation

3. Fee Discounts

Staking OPTIM provides:

• Reduced fees for creating oracle requests
• Lower bond requirements for proposers
• Priority processing for high-volume users

4. Revenue Sharing

Protocol revenue distribution:

• 50% to OPTIM stakers (proportional to stake)
• 30% to protocol treasury for development
• 20% to dispute resolvers and validators

Staking Mechanism

Staking Tiers

Tier	OPTIM Required	Benefits
Bronze	1,000 OPTIM	10% fee discount, Basic voting rights
Silver	10,000 OPTIM	25% fee discount, Enhanced voting, Dispute resolution
Gold	100,000 OPTIM	40% fee discount, Priority support, Advanced governance
Platinum	1,000,000 OPTIM	50% fee discount, Protocol council seat, Maximum rewards

OPTIM Token Contract

The OPTIM token is an SPL Token deployed on Solana. Below is the official contract address:

Verify this address on Solscan or Solana Explorer to ensure authenticity.

Optimistic Oracle vs UMA Protocol

Optimistic Oracle is not a competitor to UMA Protocol, but rather an evolution and enhancement of the optimistic oracle model. While UMA pioneered the optimistic oracle concept on Ethereum, we're building on Solana to address limitations that have hindered mainstream adoption.

Respect for UMA's Innovation

UMA Protocol deserves recognition for:

• Pioneering the optimistic oracle design
• Proving the economic security model works
• Building a robust dispute resolution system (DVM)
• Creating standards for synthetic assets and prediction markets

Areas of Enhancement

Aspect	UMA Protocol (Ethereum)	Optimistic Oracle (Solana)
Transaction Speed	~15 seconds per block	✓ 400ms finality
Transaction Cost	$5-50 per request (gas fees)	✓ $0.00025 per request
Throughput	~15 TPS (limited by Ethereum)	✓ 65,000 TPS theoretical
Challenge Period	Typically 2-3 hours minimum	✓ Configurable: 1 minute to hours
Dispute Resolution	DVM (Data Verification Mechanism)	✓ Decentralized resolver network
Token Integration	UMA token for governance	✓ OPTIM for governance + staking rewards
Developer Experience	Solidity, EVM tooling	✓ Rust, Anchor framework
Network Effects	Strong Ethereum ecosystem	✓ Growing Solana DeFi ecosystem

Key Differentiators

1. Cost Efficiency (200x cheaper)

On Ethereum, creating an oracle request costs $5-50 in gas fees. On Solana, it costs $0.00025. This 200,000x cost reduction makes micro-transactions and high-frequency oracle queries economically viable.

2. Speed (37x faster)

Solana's 400ms block time enables near-instantaneous data verification. Critical for:

• High-frequency trading applications
• Real-time liquidation mechanisms
• Live sports betting
• Dynamic NFT metadata updates

3. Scalability

Ethereum's 15 TPS limit creates congestion during high usage. Solana's theoretical 65,000 TPS ensures the oracle protocol never becomes a bottleneck.

4. Flexible Challenge Periods

While UMA requires 2-3 hour challenge periods (due to Ethereum gas costs), Optimistic Oracle supports:

• Ultra-fast: 1-5 minutes for high-confidence data
• Standard: 30-60 minutes for normal use cases
• Secure: Multiple hours for high-value decisions

5. Native Staking Rewards

OPTIM token stakers earn yield from protocol usage, creating a sustainable economic model:

Staker APY = (Protocol Fee Revenue × 50%) / Total Staked OPTIM
+ Dispute Resolution Rewards
+ Governance Incentives

Complementary, Not Competitive

We view UMA and Optimistic Oracle as serving different ecosystems:

• UMA: Ethereum mainnet, established DeFi protocols, maximum security
• Optimistic Oracle: Solana ecosystem, high-throughput applications, cost-sensitive use cases

In the future, we envision cross-chain collaboration where both protocols can verify and validate each other's data, creating an even more robust oracle network.

Getting Started

For Developers

Installation

# Install the SDK
npm install @optimistic-oracle/sdk

# Or using yarn
yarn add @optimistic-oracle/sdk

Quick Start

import { OptimisticOracleSDK } from '@optimistic-oracle/sdk';

// Initialize SDK
const oracle = new OptimisticOracleSDK('devnet', walletPath);

// Create a request
const request = await oracle.createRequest(
  "Will Bitcoin reach $100,000 by end of 2024?",
  60, // expiry in minutes
  0.1, // reward in SOL
  0.05, // bond in SOL
  1 // challenge period in hours
);

console.log('Request ID:', request.requestId);

Program Addresses

API Reference

Core Methods

createRequest()

oracle.createRequest(
  question: string,
  expiryMinutes: number,
  rewardSOL: number,
  bondSOL: number,
  challengeHours: number,
  dataSource?: string
): Promise<{requestId: number, signature: string}>

proposeAnswer()

oracle.proposeAnswer(
  requestId: number,
  answer: string
): Promise<{signature: string, proposer: string}>

challengeProposal()

oracle.challengeProposal(
  requestId: number
): Promise<{signature: string}>

resolveRequest()

oracle.resolveRequest(
  requestId: number
): Promise<{signature: string}>

getRequest()

oracle.getRequest(
  requestId: number
): Promise<RequestData | null>

Request Status Types

• Created - Request created, awaiting proposals
• Proposed - Answer proposed, in challenge period
• Disputed - Proposal challenged, in resolution
• Resolved - Final answer determined
• Cancelled - Request cancelled by requester

Smart Contracts

Core Program Structure

The Optimistic Oracle program is built with Anchor framework on Solana:

Main Instructions

• initialize - Initialize the oracle state
• create_request - Create a new data request
• propose_answer - Submit an answer to a request
• challenge_proposal - Challenge a proposed answer
• resolve_dispute - Resolve a disputed answer
• resolve_request - Finalize a request after challenge period

Account Structures

OracleState

pub struct OracleState {
    pub request_count: u64,
}

Request

pub struct Request {
    pub request_id: u64,
    pub creator: Pubkey,
    pub question: String,
    pub answer: Option<String>,
    pub proposer: Option<Pubkey>,
    pub proposal_time: i64,
    pub expiry_timestamp: i64,
    pub challenge_period: i64,
    pub reward_amount: u64,
    pub bond_amount: u64,
    pub status: RequestStatus,
    pub data_source: String,
    pub created_at: i64,
}

GitHub Repository