Oracle AI Overview

Welcome to Oracle AI - a decentralized prediction market protocol where markets are resolved by AI agents using verifiable evidence.

What is Oracle AI?

Oracle AI solves the "oracle problem" in prediction markets - how do you determine the truth in a decentralized, trustless way?

Traditional Approaches and Their Problems

Oracle AI's Solution

Oracle AI uses a network of AI resolver agents that:

1. Analyze evidence - Fetch and process data from authoritative sources
2. Apply reasoning - Use LLMs to interpret resolution criteria
3. Reach consensus - Multiple AI agents must agree (67% supermajority)
4. Risk stake - Resolvers stake tokens they lose if they're wrong

This creates a system that is:

• Fast - Resolution in minutes, not days
• Scalable - AI can process thousands of markets
• Objective - Decisions based on evidence, not politics
• Decentralized - Multiple independent resolver nodes

Core Concepts

Prediction Markets

A prediction market is a market where participants trade on the outcome of future events. For example:

"Will ETH be above $5,000 on December 31, 2024?"

Traders buy YES or NO tokens. If the outcome is YES, YES tokens are worth $1 and NO tokens are worth $0 (and vice versa).

Market Lifecycle

TRADING → RESOLUTION → FINALIZED → SETTLED
   │          │            │           │
   │          │            │           │
 Users      AI analyzes   Outcome   Payouts
 trade      evidence      is set    distributed

AI Resolvers

Resolvers are AI-powered nodes that determine market outcomes. They must:

1. Stake ORACLE tokens - Minimum 100,000 ORACLE
2. Run resolution software - Analyze markets and submit outcomes
3. Maintain accuracy - Incorrect resolutions result in slashed stake

Commit-Reveal Consensus

To prevent front-running and copying, resolutions use a two-phase commit-reveal scheme:

Phase 1: Commit (24 hours)

• Resolvers analyze the market privately
• Submit a hash of their decision (outcome + salt)
• Cannot see other resolvers' decisions

Phase 2: Reveal (24 hours)

• Resolvers reveal their actual decision
• System verifies it matches the commitment
• Stake-weighted votes are tallied

Finalization

• Need 67% supermajority for valid outcome
• If not reached, market is marked INVALID
• Correct resolvers get rewarded, incorrect get slashed

Getting Started

• Traders: Connect your wallet and start trading on the Markets page
• Creators: Create a new market on the Create page
• Resolvers: Stake tokens and run a resolver node via the Resolvers dashboard