UMA

Key Technical Advantages:

Optimistic Oracle: UMA's Optimistic Oracle allows contracts to quickly request and receive data information. It operates as a generalized escalation game between contracts initiating a price request and UMA's dispute resolution system, the Data Verification Mechanism (DVM). Prices proposed by the Optimistic Oracle are sent to the DVM only if disputed. Data Verification Mechanism (DVM): The DVM acts as a backstop for the Optimistic Oracle by resolving disputes. In the event of a dispute, a price request is submitted to the DVM, which proposes a vote to UMA tokenholders to report the price of the asset at a specific timestamp. The DVM includes an element of human judgment to ensure contracts are managed correctly when issues arise from volatile markets. Dispute Resolution: Disputers can refute a piece of data submitted by an Asserter within a predefined "liveness period". If no dispute arises within this period, the assertion is optimistically treated as correct. If an assertion is disputed, the case is escalated to the DVM for arbitration. Economic Guarantees: UMA's oracle system is designed with economic guarantees around the cost of corrupting the DVM. It's structured such that it would cost more to corrupt the oracle (i.e., gain control of 51% or more UMA tokens) than the profit one could potentially gain from corrupting it (e.g., stealing funds within contracts on UMA). Developer Tools: UMA provides a set of tools and resources for developers including a quick start guide, information on setting custom bond and liveness parameters, and a variety of example projects. These resources aid in the development and deployment of contracts on the UMA protocol. Content summarized by AI chatbot

Source:

https://github.com/UMAprotocol/whitepaper