Create with UMA’s optimistic oracle at ETHBogota
Tl;dr: Core members of UMA will be in Bogota Oct 7–9 as part of the ETHBogota conference and hackathon. This article includes details on the $8k in prizes available to hackers who create top projects with UMA at the event; resources to get started with UMA’s optimistic oracle (OO); a few specific ideas that could be built at ETHBogota; and a video introductory workshop by UMAn John Shutt focused on building with the OO.
Core members of UMA and our sister projects Across and Outcome are coming to the southern hemisphere
The ETHBogata conference and hackathon takes place Oct 7–9 in Bogota, Colombia, with more than US$300,000 to be awarded as prizes to hackers, including $8,000 in prizes for those who build the best use case with UMA’s optimistic oracle.
The event is part of a cluster of crypto/web3 events taking place in Bogota in October that also includes:
Members of UMA will be attending each of the events.
Come build with UMA at ETHBogota
The event is expected to attract plenty of hackers who will compete for prizes, connect with teams and network with the bright minds of the web3 ecosystem.
This event represents an opportunity to build and develop your own bright idea, or to riff one of our seed concepts using UMA’s optimistic oracle and/or Outcome.Finance’s DAO governance and fundraising tools like KPI options and success tokens.
Core members of UMA will be available to support and guide hackers through the competition. The winners could also be eligible to receive a further grant if you continue building using UMA.
The prizes from UMA will break down like this:
First prize of $5,000
Second prize of $2,000
Third prize of $1,000.
The event will also feature a 30-minute introductory workshop focused on building with UMA’s optimistic oracle, hosted by UMA co-founder Hart Lambur. We’ll share more details on that later.
UMA’s optimistic oracle is a human-powered truth machine for Web3
UMA is an optimistic oracle (OO) that can provide and verify any arbitrary data on-chain. Web3 is increasingly going to rely on optimistic data verification and DAO tooling, and that’s exactly what the OO is bringing to the table.
Data from UMA secures markets and smart contracts across Web3, expanding the developer design space. The OO tells smart contracts “things about the world” so they can enforce real-world payout conditions.
UMA’s OO provides super flexible data dispute resolution between smart contracts. Rewards can be earned by proposing answers to a data request, and that’s the lifeblood of the protocol. Proposed data will not be scrutinized unless it is disputed, and disputes are rare. That’s what makes UMA’s oracle optimistic.
The Across bridge, Polymarket prediction markets, and Outcome.Finance DAO tools are three of the many use cases for the OO.
The opportunities for the OO are limitless.
Key resources to prepare for ETHBogota
Three optimistic oracle ideas that hackers and develop at ETHBogota and beyond
Here are three concepts that should give hackers a head start on the building process.
Build a decentralized, bonded news service that would let anyone publish a news story but would require the reporter to post a bond. If the reporting was ultimately found to be inaccurate via the optimistic oracle, the writer could lose the bond. This system would require journalists to be accountable for their reporting with facts and sources clearly cited and verifiable. Journalists could also be assigned a “truth score” that represents the number of factors like articles not disputed, disputed unsuccessfully, and disputed successfully.
Build an Optimistic Market Maker — a smart contract system with pooled ETH that accepts bonded optimistic prices for various tokens from any proposer and uses those prices to buy tokens for slightly less than that price. You can then resell those tokens at slightly more than that price. The sellers would be willing to sell for less than the global price because the OMM price may still be better than those available on AMMs on that particular chain (and takes CEX prices into account). The buyers would be happy to buy at a price lower than the global price, either to hold or to execute some cross-chain arbitrage. This also allows for tokens to accumulate from multiple sellers and then be scooped by one buyer when it’s worth it.
Use UMA to build an optimistic paymaster compliant with EIP 4337 and other paymaster systems. In this case, a paymaster could be loaded with ETH to pay gas on users’ behalf, while taking their fee in arbitrary ERC20 tokens. That would be passive liquidity. Active participants would report on the current ETH/ERC20 exchange rates, lock ETH as a bond, and take a cut of the fees. That would be better than using DEX prices, which limit you to ERC20s with deep enough liquidity to get a good on-chain price and cost more in gas to obtain. The active exchange rate bonder could update all of the exchange rates in a single call, and since they are bonding in ETH, which is also what the paymaster is paying out in gas, the passive liquidity providers are protected.
Meanwhile, don’t forget to register for the hackathon.
Reach out with any questions and tell us more about what you want to build via Twitter, or join us on Discord and keep an eye on UMA’s channels for more details throughout ETHOnline.
