UMA Protocol Integration
How it works
UMA's Optimistic Oracle (oSnap) is integrated with Lossless Wrapped ERC20 tokens to provide a decentralized, trustless, and adminless dispute resolution mechanism. This allows for user-generated reports to be voted on using the UMA oSnap module, ensuring that the decision-making process is fair and secure. The oSnap module is designed to handle disputes related to the price of an asset or the outcome of an event. In the case of Lossless Wrapped ERC20 tokens, it is used to determine whether a reported transaction is malicious or not.
Lossless Snapshot space
Lossless Snapshot space is created on the Snapshot platform, which is used for decentralized voting on UMA proposals. Snapshot is a gasless, off-chain voting platform that allows token holders to vote on various proposals, helping to determine the outcome of user-generated reports on Lossless Wrapped ERC20 tokens. By leveraging the Snapshot platform, Lossless enables a more efficient and accessible voting process for its users.
Parameters
The parameters for the UMA integration include:
- Liveness: Set to 12 hours, representing the dispute period for proposals. During this time, disputers can challenge a proposal, and voters have the opportunity to weigh in on the dispute before a final decision is made.
- Bond: Set to 200 USDT, which determines the bond value for proposers and disputers. This value may need further evaluation to ensure its appropriateness, as it could affect the incentives for users to propose and dispute reports.
User interaction
Users can interact with the Lossless Wrapped ERC20 tokens by generating reports, staking on said reports, and voting on them using the UMA oSnap module. The UMA Optimistic Oracle takes the place of an admin in the voting process, ensuring a decentralized and trustless system. Users can participate in the voting process through the Lossless Snapshot space, influencing the outcome of various proposals.
To generate a report, a user must provide evidence of a potentially malicious transaction. Once the report is submitted, other users can stake on the report, indicating their agreement or disagreement with the claim. The UMA oSnap module is used to resolve the dispute by allowing token holders to vote on the validity of the report. The outcome of the voting process will determine if the reported transaction is considered malicious or not, and the appropriate actions will be taken based on the result.
In summary, the integration of UMA's Optimistic Oracle with Lossless Wrapped ERC20 tokens provides a decentralized and adminless solution for dispute resolution, empowering users to engage in a fair and secure decision-making process. This approach enables a more transparent and efficient system for identifying and mitigating potentially malicious transactions within the Lossless ecosystem.
Last modified 4mo ago