API3, a provider of decentralized and blockchain-native APIs, has announced that its proposal to integrate API3 data feeds to Omen prediction markets on xDAI has passed unanimously in the DXdao.
This means that API3 will begin the integration of its Airnode-powered first-party oracles to Omen, enabling Omen’s users to settle prediction markets using a variety of real-world data, starting with cryptocurrency price data.
What is Omen?
Omen is a prediction market platform that enables anyone to create highly customized prediction markets for practically any question. It is decentrally governed by the DXdao, and designed to be maximally open, decentralized, and modular, resulting in a platform that is not overly prescriptive, but rather empowers the user to design their prediction markets freely.
One facet of this modularity is Omen’s oracle-agnostic approach, which enables its users to settle prediction markets using their own choice of an oracle. Oracles are predefined data sources for bringing real-world information onto the blockchain and verifying a prediction market’s outcome.
With its Airnode-powered first-party oracle alternative, API3’s oracle integration joins Omen’s existing arbitration methods, Realit.io and Kleros.
Settling Prediction Markets With API Data
As the first step of the planned integration process, API3 will enable Omen prediction markets to be settled using an Airnode-enabled cryptocurrency price API. This cryptocurrency price data integration enables xDAI Omen users to create prediction markets for the price of virtually any traded cryptocurrency, and settle these markets using a single API call.
This API-powered oracle approach provides the prediction markets with dramatically decreased arbitration times, as well as increased cost-efficiency through a less gas and labor-intensive arbitration process, compared to more elaborate dispute resolution and arbitration mechanisms.
“DXdao is excited to kick-off a partnership with API3 starting with a technical integration to settle Omen markets using API3’s Airnode-enabled API. With the imminent launch of Omen on xDai Chain and also the launch of Scalar markets, this comes at an apt time. The Omen community is excited to see this integration come to life and lay the foundation for a deeper partnership.”
– Omen Guild
To incentivize the use of API-settled prediction markets, API3 will provide co-marketing resources to DXdao, along with a $5,000 token swap of API3 to DXD, meant to further align interests between the two DAOs. A quantified security guarantee of $20,000 will protect Omen users in case of any API-derived settlement errors. After the initial implementation of crypto price data oracles to Omen, more data types can be made available.
“Prediction markets represent an extremely promising direction for real world data -powered Web 3.0. When you add to this the open and decentralized approach that Omen is employing in their prediction market platform, it is needless to say that we are very happy we are to be partnering with them on enabling Omen users to create prediction markets settled by first-party, API-powered oracles.”
– Heikki Vänttinen, Co-founder, API3