Oracles
Polymarket uses oracles as part of its resolution and market-data systems.
What is an oracle?
An oracle is a trusted source that provides the outcome of real-world events or data such as prices and reported numbers.
Why does Polymarket use oracles?
Polymarket cannot access real-world information on its own. Oracles provide external data such as event outcomes and asset prices for use onchain.
Which oracles does Polymarket use?
Polymarket uses several oracle and resolution systems, including the Markets Team, UMA, Chainlink, and Pyth Network.
Markets Team
Polymarket has a Markets Team responsible for creating markets, writing rulesets, and resolving certain markets.
UMA
UMA (Universal Market Access) is an optimistic oracle used for event-based markets where outcomes may require human interpretation or verification.
How does UMA work?
UMA uses a three-step process:
Proposers submit an answer to the market question.
Disputers can challenge the answer if they believe it is incorrect.
Voters make the final decision if a dispute occurs.
This creates a system in which incorrect proposals can be challenged and corrected.
How does Polymarket use UMA?
Polymarket uses UMA to resolve certain event-based markets that are not handled through automated oracle feeds.
Example: Presidential Election Winner 2028
Chainlink
Chainlink is a decentralized oracle network used by Polymarket for automated crypto price resolution.
How does Chainlink work?
Chainlink collects data, such as asset prices, from multiple independent providers. It aggregates and delivers that data onchain in a timestamped and verifiable form, reducing the risk of errors or manipulation.
How does Polymarket use Chainlink?
Polymarket uses Chainlink to automatically resolve certain crypto price markets.
Example: BTC Up or Down 5m
Pyth Network
Pyth Network provides traditional financial market data used by Polymarket for assets such as stocks, indices, gold, and silver.
How does Pyth work?
Pyth collects price data from exchanges, trading firms, and other market participants and combines it into real-time price feeds.
How does Polymarket use Pyth?
Polymarket uses Pyth Pro to provide institutional-grade pricing data for traditional assets such as stocks, indices, gold, and silver. This data may also serve as a resolution source for markets resolved through UMA.
Example: What will Gold (GC) hit__ by end of December?
Polymarket US vs. Polymarket International
On Polymarket US, the Markets Team is responsible for resolving markets by determining whether the resolution criteria have been satisfied.
On Polymarket International, the Markets Team may provide clarifications, while markets using UMA are resolved through the UMA Oracle.