Polymarket, the World's Largest Prediction Market, Announces Collaboration with This Altcoin! Here Are the Details

EigenLayer, Polymarket, and UMA are collaborating to develop a next-generation oracle system that aims to improve blockchain-based data validation by leveraging EigenLayer's infrastructure and the EIGEN token.

EigenLayer, Polymarket and UMA Join Forces to Develop Next-Gen Oracle

EigenLayer, a protocol that allows users to repurchase ETH and liquid staking tokens to secure additional services, will provide the security framework for the new oracle.

The Restaking mechanism could allow Ethereum stakers to help secure the Oracle and increase its reliability through the economic support of Ethereum.

“We are working with the UMA protocol and Polymarket to research a next-generation oracle that leverages the intersubject security uniquely enabled by EigenLayer and the EIGEN token,” EigenLayer said.

Oracle is expected to operate on “intersubjective truth,” meaning that facts are determined by community consensus rather than purely objective data such as mathematical proof.

This model is closely aligned with prediction markets, where dispute resolution often depends on widely accepted interpretations of real-world events.

Developing Oracles for Prediction Markets

Prediction markets like Polymarket rely on oracles to settle bets based on real-world events. Currently, UMA's Optimistic Oracle powers Polymarket, allowing a bidder to submit an outcome (e.g. “Candidate X wins the election”).

The result is assumed to be correct unless challenged within a challenge window. In that case, UMA’s decentralized voting mechanism determines the final decision.

This system has been effective, and over 10,000 Polymarket markets have been resolved using UMA's oracle. However, occasional disagreements have raised concerns about accuracy, prompting Polymarket to explore advanced oracle solutions.

*This is not investment advice.