UMA, Polymarket, and EigenLayer Launch a Next-Gen Prediction Market Oracle

According to UMA’s official blog, this new oracle system aims to meet the increasing demands of prediction markets, which frequently process complex natural language queries and subjective data.

Modern market oracles often struggle with long queries or situations involving subjective judgment. UMA has introduced an Optimistic Oracle (OO) powered by a Data Verification Mechanism (DVM), which relies on secret voting by stakers who are economically incentivized to align with the majority.

This system has secured over $1 billion in assets and is already integrated into Polymarket, the leading prediction market platform with a total trading volume exceeding $6 billion.

Related: Polymarket Losing Relevance in 2025? The Numbers Tell All

The new project aims to not only scale existing infrastructure but also provide greater flexibility in selecting tokens for dispute resolution. Traditionally, UMA uses the $UMA token for all disputes, but the next-generation oracle will allow prediction markets to choose their own tokens, tailored to their specific needs for economic security and community engagement.

The partnership also leverages EigenLayer’s advanced features, including its ETH restaking mechanism and the use of the EIGEN token to strengthen protection against potential threats, such as bribery attacks. EigenLayer introduces intersubjective security, where truth is defined by community consensus rather than purely objective data. This approach enables the integration of both traditional and AI-driven methods for proposals and dispute resolution, greatly enhancing the system’s efficiency.

Related: Polymarket Grows as Users Move Beyond Election Bets

UMA, Polymarket, and EigenLayer are inviting researchers, market participants, and the broader crypto community to actively contribute to the development of the new system. Their combined efforts could set new benchmarks for security and scalability in decentralized prediction markets.