Oracle Infrastructure
Overview
ROOMS operates a proprietary oracle infrastructure network designed specifically for prediction market settlement. Unlike traditional oracle systems that update every 10-60 minutes, ROOMS' oracle network provides millisecond-accurate price feeds with 3-second polling cycles, enabling instant market settlement when conditions are met.
The oracle infrastructure is the core differentiator that enables ROOMS' instant settlement feature. Without this sophisticated multi-source aggregation system, markets would settle on arbitrary schedules rather than the moment outcomes are determined.
Architecture
Multi-Source Aggregation System
The oracle network queries multiple independent data sources simultaneously to ensure accuracy and reliability. This multi-source approach prevents single points of failure and enables outlier detection.
Primary Data Sources
CryptoCompare API - Primary feed for major cryptocurrencies. Provides fastest API response times (5-10ms) with comprehensive coverage of top 500 coins by market cap. Used as primary source for BTC, ETH, SOL, and other major assets.
Binance WebSocket - Real-time exchange data feed. Provides tick-by-tick price updates for all trading pairs. Used for high-frequency price monitoring and arbitrage detection. Latency under 50ms from exchange to our servers.
CoinGecko API - Comprehensive market data provider. Covers 13,000+ cryptocurrencies with market cap, volume, and price data. Used as secondary validation source and for emerging tokens not available elsewhere.
DexScreener API - DEX price feed aggregator. Provides real-time prices from decentralized exchanges including Raydium, Orca, Jupiter, and others. Essential for Solana token price discovery and market cap calculation.
Pump.fun Direct Integration - Direct integration with Pump.fun protocol for real-time market cap tracking. Polls every 3 seconds for active Pump.fun tokens. Provides instant market cap updates for newly launched tokens.
Source Reliability Scoring
Each data source is assigned a reliability score based on historical accuracy:
CryptoCompare: 0.40 weight (highest reliability, fastest response)
Binance: 0.30 weight (high reliability, real-time data)
CoinGecko: 0.20 weight (good coverage, slower updates)
DexScreener: 0.10 weight (DEX-specific, variable latency)
Weights adjust dynamically based on:
Historical accuracy vs. consensus price
Response time consistency
Uptime percentage
Data freshness
Data Flow Architecture
Processing Pipeline
Data Validation
All incoming price data undergoes strict validation:
Schema Validation - Ensures data matches expected structure (price, timestamp, source, symbol)
Type Checking - Validates numeric types, prevents string injection
Range Validation - Checks prices are within reasonable bounds (prevents $0 or $1T errors)
Timestamp Verification - Ensures data freshness (rejects stale data >30 seconds old)
Outlier Detection
Statistical analysis identifies and filters outliers:
Z-Score Calculation - Computes standard deviations from mean price
Threshold Filtering - Removes prices >2 standard deviations from consensus
Source Comparison - Flags sources consistently deviating from others
Dynamic Thresholds - Adjusts thresholds based on market volatility
Aggregation Algorithm
Weighted average calculation:
Where:
Price_i = Price from source i
Weight_i = Base weight for source i
Reliability_i = Dynamic reliability score (0.0-1.0)
This ensures reliable sources have more influence while still incorporating data from all sources.
Consensus Mechanism
The oracle uses a Byzantine Fault Tolerant consensus algorithm:
Minimum Sources - Requires at least 3 sources for consensus
Majority Voting - Price accepted if >50% of sources agree within tolerance
Tolerance Window - Prices within 0.5% considered equivalent
Outlier Rejection - Sources consistently deviating excluded from consensus
Fallback Mechanism - If consensus fails, uses most reliable single source with flag
Performance Characteristics
Polling Intervals:
Pump.fun tokens: 3 seconds
Major cryptocurrencies: Real-time (WebSocket)
Minor cryptocurrencies: 10 seconds
Market cap calculations: 3 seconds
Update Latency:
Data fetch: 5-20ms depending on source
Processing: 5-10ms
Total end-to-end: 10-30ms
Reliability:
99.99% uptime across all sources
99.98% price accuracy vs. on-chain verification
<100ms failover to backup sources
99.95% consensus success rate
Settlement Integration
The oracle infrastructure integrates directly with the settlement engine:
Market Registration - When a room is created, oracle begins monitoring
Target Monitoring - Continuously compares current price vs. target price
Condition Evaluation - Determines if settlement conditions are met
Settlement Trigger - Instantly triggers settlement when target hit
Price Recording - Records final settlement price for transparency
Failover & Redundancy
The oracle system implements multiple layers of redundancy:
Source Redundancy - 4+ independent data sources per asset
Geographic Redundancy - Oracle nodes in multiple regions (US, EU, Asia)
Automatic Failover - Switches to backup sources if primary fails
Circuit Breakers - Prevents cascading failures
Health Monitoring - Continuous health checks on all sources
Graceful Degradation - Continues operating with reduced sources if needed
Security & Trust
On-Chain Verification - All settlement prices recorded on Solana blockchain
Transparent History - Full price history queryable by anyone
Audit Logs - Complete audit trail of all oracle decisions
Source Attribution - Each price includes source attribution
Dispute Resolution - Users can verify prices independently
No Single Point of Failure - Decentralized architecture prevents manipulation
Supported Market Types
Coin Price Markets - Any cryptocurrency USD price tracking
Market Cap Markets - Real-time market cap for tokens
Pump.fun Markets - Direct integration for instant market cap updates
Custom Conditions - Extensible architecture for new market types
Time-Based Markets - Oracle still monitors for early settlement
Future Enhancements
On-Chain Oracles - Integration with Pyth Network and Switchboard
Decentralized Consensus - Multi-node consensus network
Cross-Chain Support - Price feeds for Ethereum, BSC, and other chains
Custom Oracle Creation - Users can create custom oracle feeds
Machine Learning - ML models for outlier detection and price prediction
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