Implement Advanced Market Resolution System with Oracle Integration and Dispute Mechanism

[Mosas2000]

Currently, market resolution is entirely manual and depends on the creator's honesty. We need a robust resolution system that incorporates oracle data, allows for disputes, and has automated fallback mechanisms.

Problem Statement

• Market creators could resolve incorrectly or not at all
• No verification of resolution accuracy
• Users have no recourse if resolution is wrong
• Abandoned markets remain unresolved indefinitely

Proposed Solution

Phase 1: Oracle Integration

• Integrate Redstone Oracle for price feeds
• Support for multiple data sources (Chainlink, Pyth, etc.)
• Automatic resolution for price-based markets
• Verify data before resolution

Phase 2: Dispute Mechanism

• Allow users to dispute resolution within 24 hours
• Stake required to dispute (prevents spam)
• Community voting on disputed resolutions
• Slashing for frivolous disputes

Phase 3: Automated Fallback

• If creator doesn't resolve within 7 days after resolution-date
• Oracle auto-resolves if data available
• Community vote if no oracle data
• Refund mechanism if consensus can't be reached

Technical Requirements

Smart Contract Changes

;; New data structures
(define-map disputes 
  { market-id: uint, disputer: principal }
  { stake: uint, reason: (string-utf8 256), timestamp: uint }
)

(define-map oracle-sources
  { market-id: uint }
  { oracle-type: (string-ascii 20), data-feed: (string-ascii 100) }
)

;; New functions needed
- submit-dispute(market-id, reason, stake)
- vote-on-dispute(market-id, vote)
- auto-resolve-with-oracle(market-id)
- emergency-refund(market-id)

Frontend Changes

• Oracle data display in market creation
• Dispute submission form
• Voting interface for disputes
• Resolution status tracker
• Dispute history view

Implementation Steps

1. Oracle Integration

   • Research Redstone integration on Stacks
   • Implement oracle data reading
   • Add oracle config to market creation
   • Test with live price feeds

2. Dispute System

   • Design dispute data structures
   • Implement dispute submission
   • Create voting mechanism
   • Add stake/slashing logic

3. Frontend & Testing

   • Build dispute UI components
   • Create oracle data displays
   • Integration testing
   • Security audit

Success Metrics

• 90%+ markets resolved within 24 hours
• < 5% dispute rate
• 100% oracle-compatible markets auto-resolved
• Zero unresolved abandoned markets

Security Considerations

• Prevent dispute spam
• Ensure oracle data authenticity
• Protect against flash loan attacks on oracles
• Time-lock critical operations

Dependencies

• Redstone Oracle SDK
• Additional contract storage (estimate +200 variables)
• Community governance framework

Related Issues

• 2 Emergency pause functionality
• 4 Multiple stakes support
• 5 Resolution deadline

Resources

• Redstone Stacks Integration
• Chainlink Price Feeds
• Kleros Dispute Resolution