Oracles

Details about different oracle types

Oracle Types in FrensPool

This document explains the different oracle types available in FrensPool, how they work, and when to use each one.

What are Oracles?

In blockchain applications, oracles are mechanisms that determine the outcome of events that happen outside the blockchain. In FrensPool, oracles are used to resolve prediction pools by determining whether the predicted outcome was YES or NO.

Oracle Types in FrensPool

FrensPool currently supports three types of oracles:

1. Manual Oracle

2. Chainlink Oracle

3. Social Oracle

Each has its own strengths and is suitable for different types of predictions.

Manual Oracle

How It Works

1. The pool creator manually determines the outcome after the deadline

2. They visit the pool in their "My Pools" section

3. They select either "Resolve YES" or "Resolve NO"

4. The transaction is confirmed on-chain

5. The pool is resolved based on the creator's decision

Best For

• Casual pools among friends who trust each other

• Subjective outcomes that can't be determined by data feeds

• Events without reliable data sources

• Quick and simple resolution

Considerations

• Relies entirely on the honesty of the pool creator

• No built-in verification mechanism

• Best used within trusted social circles

• The creator must be available to resolve the pool after the deadline

Chainlink Oracle

How It Works

1. When creating the pool, the creator specifies:

   • A Chainlink price feed address

   • A target price

   • A condition (greater than/equal to or less than)

2. After the deadline, the smart contract:

   • Queries the specified Chainlink price feed

   • Compares the current price to the target price

   • Resolves the pool based on the condition

3. Resolution happens automatically without human intervention

Best For

• Price-based predictions (e.g., "Will ETH exceed $5,000?")

• Objective outcomes that can be determined by data feeds

• Situations requiring trustless resolution

• Pools where participants don't know or trust each other

Considerations

• Limited to predictions that can be resolved by available price feeds

• Requires technical knowledge to set up correctly

• More gas-intensive than manual resolution

• Currently experimental on Monad Testnet as Chainlink integration is still in development

Available Price Feeds

FrensPool currently supports these Chainlink price feeds on Monad Testnet:

• ETH/USD: Ethereum price in US Dollars

• BTC/USD: Bitcoin price in US Dollars

• LINK/USD: Chainlink price in US Dollars

Note: These are mock feeds for testing purposes. In production, actual Chainlink feeds will be used.

Social Oracle

How It Works

Currently, Social Oracle defaults to Manual resolution. In future versions:

1. When creating the pool, the creator will specify trusted participants

2. After the deadline, these participants will vote on the outcome

3. When consensus is reached (based on a predefined threshold), the pool will resolve

4. Resolution will be based on the collective decision of trusted participants

Best For

• Complex predictions requiring human judgment

• Situations where multiple verifiers are preferred

• Communities with established trust

• Events without reliable data feeds but requiring more trust than a single manual resolver

Considerations

• Currently implemented as Manual resolution

• Will require coordination among trusted participants

• More complex setup than other oracle types

• Provides more security than Manual but less than Chainlink for appropriate use cases

Choosing the Right Oracle

Consider these factors when selecting an oracle type:

Nature of the Prediction

• Objective, price-based: Use Chainlink

• Subjective or complex: Use Manual or Social

• Requires human judgment: Use Manual or Social

Trust Level

• High trust among participants: Manual is sufficient

• Low trust or anonymous participants: Chainlink is preferable

• Community-based trust: Social will be ideal when fully implemented

Technical Requirements

• Simple setup: Manual is easiest

• Price feed available: Chainlink provides automation

• Complex verification needed: Social will offer balanced approach

Resolution Speed

• Quick resolution: Manual is fastest

• Automatic but may require triggering: Chainlink

• Requires consensus: Social will take longer

Future Oracle Developments

FrensPool plans to expand oracle capabilities:

1. Additional Chainlink Feeds: Support for more price pairs and data types

2. Enhanced Social Oracle: Full implementation of multi-signature resolution

3. API Oracles: Integration with trusted API sources for various data types

4. Cross-chain Oracles: Resolution based on events on other blockchains