description
A decentralized truth machine

Welcome to UMA

An optimistic oracle (OO) that can record any verifiable truth or data onto a blockchain 🔮

UMA is an optimistic oracle and dispute arbitration system that securely allows for arbitrary types of data to be brought onchain. UMA’s oracle system provides verified onchain data for projects including:

1. Crosschain bridge
2. Prediction markets
3. Insurance protocols
4. Custom derivatives

UMA's optimistic oracle (OO) is designed to be modular and extensible with focus on building real-world use cases. Two main versions of the optimistic oracle (OO) are currently live: OOv2 and OOv3. Choosing the right one depends on your use case.

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Core Concepts

Learn the fundamentals of UMA's optimistic oracle.

Optimistic Oracle V2	Build prediction markets and insurance protocols	OOv2.png	optimistic-oracle
Optimistic Oracle V3	Build data asserters and escalation managers	OOv3.png	optimistic-oracle-v3
Voting Walkthrough	Learn how to stake tokens, vote, and claim rewards	voting.png	voting-walkthrough

Correct Oracle for Your Use Case

UMA offers OOv2 and OOv3. Based on your idea and product, let's learn which one fits your use case best:

OOv2	OOv3
Integrations must submit data requests that can then be answered by third-party proposers.	Integrations submit assertions, where they propose data to their own request along with its parameters.
The specific parameters for proposers and disputers to follow must be included in the request.	The challenge period and dispute process remains the same.
Primary use cases: Prediction markets, sports betting applications, and insurance protocols.	Primary use cases: Crosschain infrastructure, content moderation, transaction verification.

We understand that your product needs can be complex and would require a larger discussion on which optimistic oracle version to use. Feel free to reach out to us here and get help.

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Developer Quickstart

Having decided the correct optimistic oracle for your use case, let's now dive deeper into how you can ship apps powered by verifiable onchain truth using UMA's optimistic oracle.

{% tabs %} {% tab title="OOv2" %} OOv2 prioritizes protocols that need third-parties to propose answers to data requests.

Here are some app guides to help you build on UMA OOv2:

Prediction Market	Use OOv2 to identify and settle real-world events in prediction markets.	Dev Quickstart - Prediction Markets.png
Insurance	Use OOv2 to verify and resolve claims in insurance applications.	Dev Quickstart - Insurance.png

{% endtab %}

{% tab title="OOv3" %} OOv3 prioritizes protocols that simply needs asserted data to be verified.

Here are some app guides to help you build on UMA OOv3:

Data Asserter	Use OOv3 to asserts arbitrary offchain data onchain through flexible assertions	Dev Quickstart - Data assertion.png
Escalation Managers	Use OOv3 to enable modular functionality via custom escalation managers	Dev Quickstart - Escalation managers.png

{% endtab %} {% endtabs %}

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Community

The UMA token secures UMA’s optimistic oracle through decentralized governance and economic guarantees against corruption. Token holders vote on upgrades, price requests, and disputes, earning rewards for honest participation.

UMA Improvement Proposals (UMIPs) are design documents used to propose changes to the UMA ecosystem. They are an important part of UMA's governance processes.

The UMA DAO accepts proposals for onchain actions that require tokenholders approval. An example would be a request for funding from the UMA treasury.

Governance	Learn about UMA token, UMIPs and voting on UMA's DVM	01UMA governance.png
UMIP Process	Learn how UMIPs propose changes to the UMA Ecosystem	02UMIP process.png
DAO Proposals	Learn how you can submit onchain proposals to the UMA Ecosystem	03DAO proposal.png

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Resources and Support

We request all community members and developers to join our discord server and gain instant help on any issues they face while voting or submitting proposals to UMA.

You can find more support resources here.

The security of our protocol is extremely crucial. If you notice any bugs in the protocol, please report them here. You can also find details of our audits here.