Optimistic Oracles in CVM

Wave 2 Intent:

  • Maximize modular integrations

Overview:

There are an increasing number of optimistic oracle protocols being deployed to public shared networks and rollups, mostly to EVM based ones. In contrast, not so many solutions seem to integrate optimistic oracles to application specific rollups (appchains), even though they could work with a little adaption, by also running the node for the dapp rollup.

Optimistic oracles could unleash a new class of applications on Cartesi Rollups. By providing data directly to the app-based Cartesi Machine, we could avoid a costly hop through base-layer contracts and enable availability through blobs or other data availability solutions with support for more complex data inputs (e.g., compressed, signed, or larger).

Solution Criteria:

We encourage teams applying for this RFP to submit:

  • Solutions that enable triggering the request to the oracle from the Cartesi Machine’s context (application context), without waiting for a settlement period (base layer message).
  • Solutions in which the data validation/verification also happens in the Cartesi Machine’s context.
  • Solutions that reuse widely used and successful optimistic oracle projects or their architecture principles.
  • Solutions that will further decentralization and be sustainable in mainnet.
1 Like
  • Suggestion (minor): Define, or provide a reference, what is an Optimistic Oracle.

  • Suggestion: Provide some examples of successful Optimistic Oracles (OO) projects. UMA?

  • Suggestion: Provide, if possible, any promising/potential use cases (or verticals) that could be a good fit for this proposal.

  • Doubt: Did not get the idea on the following solution criteria.

    • Solutions in which the data validation/verification also happens in the Cartesi Machine’s context.

Can you expand a bit on the demand you see for this feature? I think an important part of evaluating RFPs is not just assessing whether the proposal is technically sound or useful in general terms, but also considering whether it’s the right time for it. Is this addressing an immediate need within the ecosystem, or are we aiming to anticipate a future demand?

I’m sharing this same feedback on other proposals as well, as I think these questions are key to making well-informed decisions. Thanks for your input!

Honestly I think a good definition of Optimistic Oracle could be the following:
Mechanisms that assume data submissions are true unless actively disputed within a specified time window. These systems are generally cheaper and more scalable than traditional oracle designs, as they rely on a challenge-based mechanism rather than constant validation by multiple parties.

For examples, UMA is the only one I am familiar with https://uma.xyz/
Pyth Network, is an interesting one. it’s not really fully an OO, but leverages optimistic principles

  • DeFi Applications: feeds for lending protocols.
  • Gaming: in-game events where optimistic oracles bring trusted off-chain data.
  • Prediction Markets: Resolving bets or prediction outcomes.

The text

refers to the idea that contesting the oracle could be done directly inside the machine through a governance system or mechanisms to contesting are provided there.

I don’t see as a huge demand, and definitely not highest priority, but something that could help in terms of being a guiding light or inspiration serving as a catalyst to people brainstorm more dApp ideas. What this RFP would bring is replaceable with other solutions, but it’s a great convenience feature.

Update:

This RFP proposal does not align with the immediate needs of the Cartesi ecosystem as outlined in the CGP Wave 2 Intents. As a result, the Grants Council has decided not to move forward with its adoption.