EigenLayer, Polymarket, and UMA Join Forces to Develop Next-Gen Oracle System
The approach focuses on “intersubjective” truth — facts agreed upon by a community — a feature particularly useful for prediction markets that often rely on community consensus rather than purely objective data.
The Partnership to Enhance Oracle Scalability and Functionality
UMA, known for its Optimistic Oracle system, explained in a blog post that the collaboration aims to improve the functionality and scalability of oracles in prediction markets.
The teams plan to develop an oracle that aligns dispute resolutions with community input, thereby enhancing both the economic security and capacity of the oracle system.
Polymarket, a decentralized prediction platform where users trade on real-world event outcomes, has been using UMA’s oracle system since its inception.
Currently, when a market closes on Polymarket, a proposer submits an event outcome, which is accepted unless disputed.
If challenged, UMA’s decentralized voting mechanism resolves the dispute.
We’re working with @UMAprotocol and @Polymarket to research a next-gen oracle utilizing the intersubjective security uniquely enabled by EigenLayer and the EIGEN token.
More details ↓ https://t.co/1LmZgf8Uk3
— EigenLayer (@eigenlayer) February 19, 2025
This collaborative project seeks to build on that foundation by introducing a system that can better accommodate a wider range of scenarios as prediction markets evolve.
The partnership with EigenLayer could allow Ethereum (ETH) stakers to secure the oracle, strengthening its economic backing through Ethereum’s security.
EigenLayer’s platform enables users to restake ETH or liquid staking tokens to secure additional services like oracles, thus improving their reliability.
Unlike traditional decentralized oracle networks like Chainlink and Pyth, which aggregate off-chain data from multiple sources, this new oracle system focuses on community consensus and dispute resolution, making it well-suited for prediction markets.
Oracles are crucial in blockchain ecosystems because they bridge the gap between on-chain smart contracts and off-chain data.
They enable decentralized applications (dApps) to access real-world information, such as price feeds, weather data, or sports results, which is essential for functions like prediction markets, DeFi platforms, and insurance contracts.
Bloomberg to Integrate Polymarket Election Odds into Terminal
Last year, leading financial data and news service provider Bloomberg LP revealed that it aims to incorporate election odds data from the crypto betting platform Polymarket into its widely used Terminal.
Polymarket, a blockchain-based prediction market operating on the Polygon network, became a prominent platform for tracking real-time election odds.
However, the platform has also faced some controversy.
Last month, it came under scrutiny after the contentious resolution of a market predicting whether TikTok would be banned in the United States before May 2025.
The market, which attracted $120 million in trading volume, was resolved to “Yes” on January 20 after the U.S. Supreme Court upheld a law banning the app due to national security concerns.
The controversy stems from the timing and interpretation of the ban.
On January 19, TikTok began displaying a notice to U.S. users stating the app would no longer be accessible, coinciding with the Supreme Court’s decision.
However, complications arose when President Donald Trump intervened just a day later, granting TikTok a 75-day extension to negotiate terms with ByteDance.
Source: cryptonews.com
