Optimistic Oracles

All properties in the housing network are required to go through an acquisition process which determines the suitability of a potential property and handles the on and off-ramping of on-chain and off-chain assets. This requires verification of all property details using public data, due diligence by licensed professionals, and a match with the basic underwriting criteria. This data is either objective and publicly available, or relies on honesty from accredited individuals who stand to face financial penalties from losing their licenses in excess of the potential gain from fraud.

Once a property is approved, it can be written on-chain as an approved asset using an optimistic oracle. In addition to a basic profile of the property, this includes details such as the escrow address to route treasury funds for purchase, as well as details such as the cost to purchase a given property.

More information on the data used can be found in the section on our 2 Point Data Approval System

Optimistic Oracles work by providing a financial incentive to dispute invalid data, meaning that anyone can verify the answer for themselves before the data is put on-chain. Since Theopetra's data is publicly verifiable, anyone can dispute the reported values in the oracle, and be compensated for doing so, if they are able to correctly identify and disprove a mistaken value.

To learn more about Optimistic Oracles, read more at UMA's documentation