LP-0100: Optimistic Oracle Integration

Field	Value
LP	0100
Title	Optimistic Oracle Integration
Author	Lux Core Team
Status	Draft
Created	2025-12-31
Category	Oracle Infrastructure

Abstract

This proposal introduces UMA's Optimistic Oracle (OO) system to the Lux blockchain, providing dispute-backed price assertions for prediction markets, governance, and oracle dispute resolution. The integration leverages Lux's native G-Chain GraphQL (no external subgraph needed) and uses DLUX as the voting token for DVM disputes.

Motivation

Current oracle systems on Lux (Chainlink, Pyth, DEX TWAP) provide real-time price feeds but lack a mechanism for:

Human-readable data assertions - Questions like "Did Team X win the championship?"
Economic dispute resolution - Bond-backed assertions with escalation to token voting
Prediction market resolution - Binary/multi-outcome market settlement

UMA's Optimistic Oracle fills these gaps with a battle-tested dispute mechanism used by Polymarket and other major protocols.

Specification

Core Contracts

Contract	Location	Purpose
`OptimisticOracleV3`	`contracts/uma/optimistic-oracle/`	Core assertion/dispute engine
`Finder`	`contracts/uma/registry/`	Service locator for DVM components
`Store`	`contracts/uma/registry/`	Oracle fee management
`Registry`	`contracts/uma/registry/`	Contract registration
`IdentifierWhitelist`	`contracts/uma/registry/`	Approved query types

Assertion Flow

1. Asserter calls assertTruth(claim, bond) → assertionId
2. Liveness period begins (default: 2 hours)
3. If no dispute → assertion settles as TRUE
4. If disputed → escalates to DVM voting (DLUX holders)
5. Result stored on-chain, callbacks triggered

Integration with Existing Oracle

UMA becomes source #5 in Oracle.sol via UMAOracleAdapter:

// Oracle source priority
1. DEX Precompile (0x0400) - Real-time pool prices
2. Chainlink - Established feeds
3. Pyth - Low-latency feeds
4. TWAP - AMM time-weighted
5. UMA Optimistic - Dispute-backed prices (NEW)

DVM Voting

When assertions are disputed, DLUX holders vote to resolve:

Voting Token: DLUX (existing governance token)
Voting Period: 48-72 hours
Quorum: 5% of staked DLUX
Slashing: Incorrect voters lose portion of stake

Native GraphQL (No Subgraph)

Lux's G-Chain precompile (0x0500) provides native indexing:

type Query {
  assertion(id: ID!): Assertion
  assertions(status: AssertionStatus): [Assertion!]!
}

type Assertion {
  id: ID!
  asserter: String!
  claim: String!
  bond: BigInt!
  expirationTime: BigInt!
  settled: Boolean!
  truthValue: Boolean
}

Parameters

Parameter	Value	Rationale
Default Liveness	7200 seconds (2 hours)	Balance speed vs security
Burned Bond %	50%	Incentivize correct assertions
Min Bond	Configurable per market	Flexibility for different use cases
DVM Voting Period	48 hours	Allow global participation

Security Considerations

Economic Security: Bond requirements deter spam; slashing punishes incorrect votes
Time-locked Resolution: 2-hour liveness prevents same-block manipulation
DVM Fallback: Human judgment for ambiguous cases
Circuit Breakers: Integration with existing Oracle.sol protections

Implementation

Contracts deployed to ~/work/lux/standard/contracts/uma/:

optimistic-oracle/OptimisticOracleV3.sol
optimistic-oracle/interfaces/IOptimisticOracleV3.sol
registry/Finder.sol
registry/Store.sol
registry/Registry.sol
registry/IdentifierWhitelist.sol

lp-0100-optimistic-oracle-integration