Optionroom — OaaS the next big thing ?

Many might want to know what is option room and why there is so much fuzz about them and would like to know about them. This article tries to explain as clearly and as easily as possible on what option room is, why it is needed and why it is a big deal.

What is Optionroom?

Optionroom is a user governed oracle and forecast protocol built on protocol. Well, that seems simple and complex at the same time. First of all, oracle is something that acts as a bridge between the outside world. They provide the external data to the smart contracts (Example: Knock, Knock, Chainlink). User governed means the user has the ability to create oracle. Well with the introduction, lets dig a little deeper. Shall we?

What does Optionroom exactly do?

Optionroom provides Oracle as a service to anyone who wants to request the oracle. The user who wants oracle services needs to allocate ROOM (tokens) as rewards. People who participate in the governance using governance tokens (COURT — That’s right, option room has 2 tokens. One as utility and other for the governance purpose). In addition to that users can create forecast prediction market too. It also involves the following steps:

a) Market validity voting — Voting to confirm the validity of the market. Voting participants get ROOM tokens.

b) Market participation — Users participate in the pool

c) Market Locking — Locking of active pool

d) Market Settlement — Settlement vote to decide on the outcome of the market.

Tokens and their utility:

There are 2 tokens.

a) ROOM — Utility tokens. It is the token which will be rewarded for participation in the protocol.

b) COURT — Governance tokens (Yes, this is the key for all. For participating in any protocol, you first need to stake COURT tokens)

Governance voting method:

Optionroom team has a very good method of governance voting. They assign user an authenticity score (0–100).

For example: User A at the start of day 1 will have authenticity score of 0 and after 100 days, he/she would have score of 100. If the user participates in losing votes, he/she loses 50% of their COURT tokens and their score resets to 0 (Ouch..! have to be careful).

Ok, you got me in Governance and rewards, what else are you going to come up with. (Insert Vince Mcmahon gif here). Yes, they have buyback mechanism too.

Each market settlement has a fee of percentage of the winnings from which a part is used to buyback ROOM tokens from open market. withdrawal fees are also included in buyback mechanism.

You may ask, ok all is good. But there is always a chance of bad actors in any protocols. Be it in POW or in POS or in DPOS any consensus system always pose risk of attack vectors. But these protocols always try to mitigate the risks. So optionroom too indeed has attack vectors.

a) Smart contract vulnerability — Optionroom is going to conduct a professional security audit and also bug bounty program to reward white hat hackers for finding any bugs (Most of the top project does this).

b) Losing side market settlement — As mentioned already bad faith actors lose 50% of their tokens and their authenticity score resets to 0.

Initially planned to be on Ethereum. Optionroom V2 is planned on Polkadot(OMG, Yes!!). Building on Polkadot will definitely give an edge as it can seamlessly communicating with other blockchains.

Our verdict — Overall this is a solid project and has potential to rival big players like chainlink in addition to offering more than what they does. People can go all in!!

Note: We didnt discuss tokenomics and LP rewards as we want to keep this article simple