Option Room — The oracle for Polkadot
To understand Option Room, it is key to understand what oracles are.
Oracles are third-party services that give external information to smart contracts. Without trusted oracles, smart contracts would be limited in functionality. I'll explain it better with an example
Example
Matt purchased flight insurance through a smart contract on the Polkadot network. His flight got cancelled and this would lead to him claiming for insurance. Oracles can help in such cases by giving accurate data in this case that the flight got cancelled. If a trusted oracle can provide such data, to the smart contracts then upon receiving reliable data that the flight has been cancelled, payments can be made to Matt without him ever doing anything.
Oracles can automate and make life easier for us. The hard part is to get trusted reliable data. Anyone can create an oracle request by paying the oracle request fee.
Tokenomics
Option room has a dual token model.
- utility token (ROOM) and
- Governance token (COURT)
COURT tokens can be obtained by providing liquidity/staking ROOM, while ROOM tokens are rewarded to protocol participants who help in its different functions. COURT tokens can also be stake for voting power determined by authenticity score and the amount of time staked. Honest governance participants are rewarded with ROOM tokens while dishonest participants are punished by token slashing and authenticity score reset.
The fees generated are used towards buyback programs for the token.
Governance
There is a minimum ratio of votes that are needed for a proposal to pass. For market validity voting this threshold is set at 51%, for market settlement voting this threshold is set at 66%. For normal proposals not related to markets, the threshold is also set at 51%. For market validity voting if the vote threshold isn’t met the proposal gets re-cast.
Oracles are necessary for any smart contract blockchain to thrive. Option Room should fill this gap in the Polkadot blockchain.
Learn more at — https://www.optionroom.finance/
Twitter — https://twitter.com/option_room
