
UMA provides an optimistic oracle that Prediction markets rely on for resolution.
I dislike UMA’s system for a variety of reasons that all circulate around it being an easy attack vector.
The process for a market on Polymarket to be initialized and resolved is the following:
-
Decide the market structure (binary, categorical, continuous) and the potential outcomes.
-
Determine the rules (I.E., what is the prediction market based on?)
-
Configure a resolution source (e.g., political markets might use a government source,