SuperUMAns #74 - USA Elections On Polymarket Secured By UMA's Optimistic Oracle

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Written by

#Club1BCH

4 weeks ago

In community: Everything Crypto(f12e)

Topics: Suprerumans, UMA protocol, Election, Cryptocurrency, Blog, ...

The US Presidential Elections will probably provide another surprise! Some will support Trump, some will support Biden, while some will support an underdog. The odds for each candidate are constantly shifting and the prediction markets are reaching record breaking volumes. Any user with a web3 wallet can bet on events and receive fair rewards if the bet is correct, but how did blockchain enhanced the user's experience?

Online bookies are bullies, charging high fees and even blocking successful players from betting. Online betting companies will enforce low maximum limits to customers and play any card in their sleeves to make profit. The synergy created by the Optimistic Oracle and Polymarket created an open and trustless alternative.

The prediction market sector was improved by UMA's optimistic oracle, as the tool revolutionized the landscape. Polymarket is using UMA's support to decentralize prediction markets and solve problems associated with traditional venues.

Prediction markets have long held a place at the heart of the Cryptoverse and the Polymarket success story was built on UMA's Optimistic Oracle. The Web3 platform helps users bet on current events in sports, politics and more. The OO uses game theoretical principles to find a Schelling Point for any outcome, which makes it a powerful tool for resolving Polymarket disputes.

UMA and the Optimistic Oracle will have a key role in the future of decentralized prediction markets, making them more liquid. The decentralized prediction markets sector is niche but with a huge potential of growth. We may soon see more events, more options and markets for any type of event. UMA's Optimistic oracle can and will support the prediction market space to bloom!

The Polymarket design simple, with the option of buying and selling shares for USDC. Major sporting and political events will always trend on Polymarket, because macroeconomic and political topics tend to attract higher liquidity.

I decided to give it a try and have a longshot for the Presidential Election Winner 2024! Was pointless to go for Donald Trump or Joe Biden, as the odds were quite low, so my choice was a surprising one! What if.... Robert F. Kennedy Jr wins the race?

I was expecting a smother experience on Polymarket, and an easy Web3 one-click process! It wasn't that smooth as I had to click two approvals and then deposit the USDC into an address that was supplied for my account. I was expecting to simply use the USDC from my wallet, as the fees on Polygon are low.

However, I sent 30 USDC to that address and waited less than a minute for my account to be topped up. Spent $29.21 on 1947 shares, at 1.5 cents each, and my prediction was settled. The current value of my bet dropped by 2% after that but the chance of winning $1947 made the experience fun. It's a longshot playing the underdog but we seen so many amazing stories lately!

But what's the mechanism behind prediction markets? The funds are locked in smart contracts, so traders who predict correctly receive instant payouts. Decentralized prediction markets don’t ask for KYC details, as the users will only need a Web3 wallet to participate. Everything is transparent as all data gets recorded on-chain and the participants can see where the funds are going.

The Optimistic Oracle helped prediction markets because it can determine any truth. The OO will verify any smart contract data, offering versatility to power markets predicting absolutely everything ... from the next US President, the SuperBowl winner, Oscar awards to and any other outcome.

The Optimistic Oracle differs from Chainlink and other traditional oracles because it has the ability to find the truth for ANY outcome, easily solving "gray area" disputes when there is no categorical right or wrong case. US will have a new POTUS this year... and I hope Kennedy Jr. will be the one!