# Oracle Related Articles

HTX News Center provides the latest articles and in-depth analysis on "Oracle", covering market trends, project updates, tech developments, and regulatory policies in the crypto industry.

Polymarket Users Cry Foul After $85 Million Bet On MicroStrategy’s Bitcoin Sale Goes Wrong

A dispute involving over $85 million erupted on Polymarket after the prediction market proposed a "No" resolution to the question of whether MicroStrategy (Strategy Inc.) sold Bitcoin by May 31, 2026. The company confirmed selling 32 BTC between May 26-31 in an SEC filing on June 1. Polymarket's proposal argues the public confirmation arrived after the deadline, while "Yes" traders contend the question refers to the sale date, not the announcement date. The outcome is now subject to a binding UMA token-holder vote. The dispute highlights concerns about UMA's oracle mechanism, where voting power is concentrated and conflicts of interest exist. This high-stakes conflict challenges Polymarket's credibility amid regulatory scrutiny.

bitcoinist06/02 20:01

Polymarket Users Cry Foul After $85 Million Bet On MicroStrategy’s Bitcoin Sale Goes Wrong

bitcoinist06/02 20:01

Vitalik: Building Index-Tracking Assets Based on Options Rather Than Debt

Vitalik Buterin proposes constructing index-tracking assets using synthetic options rather than debt-based mechanisms. The core problem is enabling exposure to a price index (T, e.g., USD/ETH) in a trust-minimized environment where only ETH is a trustless asset, relying solely on a decentralized oracle. Traditional approaches, like algorithmic stablecoins, use debt positions and require real-time, binding oracles for liquidations, which are difficult to secure. This article suggests a paradigm shift: eliminating liquidation and using options as the fundamental building block, requiring only a "slow" oracle. The design defines two synthetic assets, P and N, with parameters for the index T, a strike price S, and an expiry M. At any time, 1 ETH can be split to create a (P, N) pair or merged back. At expiry M, the oracle determines T's value x. P receives min(1, S/x) ETH, and N receives max(0, 1 - S/x) ETH. This structure inherently avoids insolvency risk (P+N=1) and can share an oracle with prediction markets. To gain stable exposure to T (e.g., USD), a user would hold deeply "in-the-money" P options (with S significantly below the current price) and periodically "roll" them to lower strikes as the price approaches the current strike, rebalancing their portfolio. This transfers the decision of *when* to act from a protocol-enforced liquidation (requiring a real-time oracle) to the user or an automated wrapper. Users can manage MEV risk and oracle dependency by choosing their rebalancing timing and data sources. A key trade-off is accepting some quadratic drift (deviation from perfect peg), estimated at 1-4% annualized volatility. Buterin argues this cost is reasonable compared to fiat currency volatility or equilibrium shifts in other stablecoins. The success of this model depends heavily on designing low-slippage market mechanisms for the rebalancing process, leveraging users' low time preference to execute trades patiently.

marsbit06/02 03:12

Vitalik: Building Index-Tracking Assets Based on Options Rather Than Debt

marsbit06/02 03:12

Top 10 Promising Emerging Hyperliquid Native Protocols to Watch

Title: A Review of 10 Emerging Native Protocols on Hyperliquid Hyperliquid is evolving beyond perpetual contracts into a comprehensive on-chain financial stack. This article highlights 10 key native protocols driving this growth: 1. **Monetrix**: A yield-optimizing protocol akin to Ethena, aggregating funding rates, HLP rewards, maker rebates, and HIP-3 into a single stablecoin yield. 2. **ROSETTA**: An automated stablecoin yield router, allocating USDC across top protocols (e.g., Felix, Aave, HLP) for optimal returns, factoring in gas and slippage. 3. **papertrade.xyz**: A fair-launched perpetuals protocol offering up to 1000x leverage, no funding rates, no slippage, and fully on-chain, oracle-based execution. 4. **alt.fun**: A launchpad where tokens are paired with leveraged perpetual positions (2x-5x), linking token price to trading activity and underlying position performance. 5. **Ventuals**: Pre-IPO perpetual contracts (built on HIP-3) allowing up to 10x leveraged speculation on valuations of private companies like SpaceX and Stripe. 6. **Liminal**: A delta-neutral yield protocol that captures funding rates via automated short positions and uses generated xTokens (xBTC, etc.) as DeFi collateral. 7. **Melt**: Brings tokenized stocks, commodities, and RWAs to Hyperliquid spot markets, enabling 24/7 trading alongside crypto assets. 8. **Chainsight**: An oracle and data infrastructure protocol providing low-latency (<3s) price feeds, volatility indices, and risk metrics for novel derivatives. 9. **rip.xyz**: Tokenized vault strategies on HyperEVM; its flagship rHYPURR offers liquidity and fractional exposure to a Hypurr NFT basket, priced hourly via NAV. 10. **Markets**: A perpetuals exchange (by Kinetiq) for trading stocks, forex, commodities, bonds, and crypto with up to 50x leverage, using USDH collateral and Kaiko oracles. These protocols form the foundational layer for generating real yield, liquidity, and innovative financial products natively on Hyperliquid.

marsbit05/21 12:39

Top 10 Promising Emerging Hyperliquid Native Protocols to Watch

marsbit05/21 12:39

Weekly Token Unlocks: PYTH Unlocks Tokens Up to 37% of Circulating Supply

This week's major token unlocks feature three notable projects, each releasing a significant number of tokens into circulation. **Pyth Network** is set for the largest unlock, releasing 2.12 billion PYTH tokens valued at approximately $95.24 million. This amount represents a substantial portion of its circulating supply. Pyth is a decentralized oracle network providing real-time financial market data for DeFi applications. **LayerZero** will unlock 25.71 million ZRO tokens, worth around $32.91 million. LayerZero is a full-chain interoperability protocol designed for secure and configurable cross-chain messaging. **Kaito** will release 17.6 million KAI tokens, with an estimated value of $7.78 million. Kaito is an AI-driven platform that aggregates and analyzes fragmented Web3 information from various sources like social media and governance forums. Each project section includes links to their official Twitter and website, along with a chart depicting their specific token release schedule.

marsbit05/17 03:23

Weekly Token Unlocks: PYTH Unlocks Tokens Up to 37% of Circulating Supply

marsbit05/17 03:23

Zero Funding Rate? The New Contract Design of HyperEVM That Foreigners Are Talking About

Jez, a prominent crypto trader, announced his new protocol PaperTrade on HyperEVM, sparking significant discussion. PaperTrade is a perpetual DEX with zero fees, no slippage, and no funding rates. The protocol's mechanism draws from the historical "bucket shop" model, where trades are settled directly against a public LP pool based on Hyperliquid's order book prices, without ever interacting with Hyperliquid's matching system. It combines perpetual contracts with P2P lending and DeFi Ponzi elements. User losses go into the LP pool, while a portion of user profits is taken as protocol fees. Crucially, the LP pool is seeded solely by user losses, not external deposits. If a user's profit exceeds the pool's balance, the profit enters an on-chain queue, to be paid out sequentially by subsequent user losses. The protocol mints its PAPER token based on user losses, with a minting rate that decays as the LP pool grows. Staking PAPER yields dividends from protocol fees and excess pool funds above a $5M cap. A key uncertainty is its deployment on HyperEVM. Since PaperTrade essentially uses Hyperliquid as a free oracle, its logic could be replicated on any high-performance chain with an external price feed, potentially offering better performance or incentives. The launch also serves as a stress test for HyperEVM's network capabilities.

marsbit05/14 03:15

Zero Funding Rate? The New Contract Design of HyperEVM That Foreigners Are Talking About

marsbit05/14 03:15

Crypto Security Fears Rise As Chaos Labs Reveals Attempted Advanced Wallet Attack

Chaos Labs disclosed a sophisticated attempted hack targeting its operational wallets over a weekend, prompting several crypto firms to switch oracle providers. Borrowing platform Tydro, Solv Protocol, and Kelp DAO are among those migrating to Chainlink's oracle infrastructure, signaling a broader shift in confidence. Chaos Labs founder Omer Goldberg stated the attack was contained to routine operational wallets and that the core Chaos Oracle Network was not breached. The company rotated all keys and detected no further suspicious activity. Cyber professionals informed Chaos Labs that the methods were consistent with a nation-state attack, though no specific country was named. This incident occurs amid a difficult month for crypto security, including the high-profile Kelp DAO exploit in April.

bitcoinist05/09 09:04

Crypto Security Fears Rise As Chaos Labs Reveals Attempted Advanced Wallet Attack

bitcoinist05/09 09:04

Contract Audit Passed, Thermometer Did Not: Polymarket's 'Physical Vulnerability' Moment

According to reports, an individual manipulated temperature sensors at Paris Charles de Gaulle Airport (LFPG) on April 6th and 15th, causing brief, anomalous spikes of over 3°C. These events were allegedly orchestrated to profit from corresponding low-probability bets on the prediction market Polymarket, turning a small investment into approximately $34,000. The French national meteorological service, Météo-France, filed a criminal lawsuit after discovering signs of physical tampering. The attack required minimal technical skill; the perpetrator reportedly used a battery-powered hairdryer to briefly heat the publicly accessible sensor. Polymarket’s market for Paris temperature settles based on the day's highest recorded temperature from a data chain that runs from the physical sensor to Météo-France, to Weather Underground, and finally to its smart contract. In response, Polymarket did not void the profits or make an official statement. It silently changed the data source for its Paris market from LFPG to Le Bourget Airport (LFPB), a location with similarly unprotected sensors. This incident highlights a critical vulnerability: while the smart contracts are audited and secure, the physical data sources feeding them remain exposed and easy to manipulate.

marsbit04/23 04:39

Contract Audit Passed, Thermometer Did Not: Polymarket's 'Physical Vulnerability' Moment

marsbit04/23 04:39

On the Same Day Aave Introduced rsETH, Why Did Spark Choose to Exit?

On April 18, Kelp DAO's cross-chain bridge was exploited, resulting in the malicious minting of 116,500 unbacked rsETH. The attacker deposited these into Aave and borrowed WETH, creating a potential bad debt of approximately $195 million. Aave’s Guardian quickly froze the market, but the protocol’s insurance could only cover about 25% of the loss. In contrast, SparkLend, a lending protocol in the MakerDAO ecosystem, suffered no direct losses. This was not due to superior foresight but rather a preemptive governance decision. On January 29, Spark executed a governance action to discontinue new rsETH supply, citing low usage and high concentration from a single wallet. The same day, Aave expanded its rsETH market by enabling E-Mode with a 93% LTV to attract more deposits. Spark’s risk management framework is designed to remove assets with low usage or poor risk-adjusted returns, regardless of external security concerns. Aave’s decision was growth-oriented, aiming to boost WETH utilization and attract capital. Spark also employs additional safeguards: rate-limited supply and borrow caps that would have limited the scale of such an attack, and a robust oracle system using the median of three price feeds. These mechanisms systemically contain the maximum exposure to any single risk event, demonstrating a fundamentally different approach to risk than Aave’s growth-first model.

marsbit04/20 08:14

On the Same Day Aave Introduced rsETH, Why Did Spark Choose to Exit?

marsbit04/20 08:14

Bloomberg Terminal Earns Billions Annually from Data Intermediation, Now 6 Institutions Are Putting Data Directly On-Chain

Six major financial institutions — Fidelity, Euronext, Tradeweb, OTC Markets Group, Singapore Exchange (Forex), and Exchange Data International — have begun publishing proprietary market data directly on-chain via Pyth Network. This move bypasses traditional data intermediaries like Bloomberg, which has long dominated the financial data market with annual revenues of approximately $10 billion from its terminal business alone. The shift enables developers on over 100 blockchains to access high-quality, real-time financial data — including ETF valuations, fixed income data, FX rates, and OTC securities — without long-term contracts, steep fees, or proprietary hardware. This development is critical for the scalability of real-world asset (RWA) tokenization in DeFi, as reliable, institutional-grade data must be available on-chain before assets can be traded or used as collateral in decentralized protocols. Pyth’s model differs from earlier oracle solutions like Chainlink by sourcing data directly from institutional traders and exchanges rather than aggregating from third-party sources. While this approach offers higher speed and accuracy, it also involves a more centralized network of known publishers. The move challenges the decades-old monopoly of data middlemen and could significantly reduce barriers to entry for developers building DeFi products tied to traditional financial markets.

marsbit04/16 05:49

Bloomberg Terminal Earns Billions Annually from Data Intermediation, Now 6 Institutions Are Putting Data Directly On-Chain

marsbit04/16 05:49

Polymarket Sees Record $153M Daily Volume After Chainlink Integration

Polymarket experienced a significant surge in activity following its integration with Chainlink's data feeds, achieving a record $153 million in average daily volume—a threefold increase. The platform's short-duration crypto markets, which update every five and fifteen minutes, have collectively processed over $4 billion in total volume. Notably, the five-minute markets alone attracted more than $200 million in their first week. Chainlink's oracles provided the necessary real-time, reliable pricing to support the fast-paced trading environment, attracting both retail and institutional participants. This integration is credited as the key catalyst for the growth, enhancing market liquidity and enabling secure, high-volume transactions without compromising on speed or trust.

bitcoinist04/10 10:03

Polymarket Sees Record $153M Daily Volume After Chainlink Integration