Prediction Market Resolution Engine
Uses CRE

Prediction Market Resolution Engine

What is it

A Chainlink-managed service that resolves prediction markets from the agreement of independent data providers, decided on a decentralized oracle network.

prediction-markets

The Chainlink Resolution Platform is a Chainlink-managed service that proposes outcomes for prediction markets and delivers the result wherever the customer settles, off-chain or on-chain.

It is built on two planes. A control plane, operated by Chainlink Labs, handles coverage registration, market discovery, per-market scheduling, and SLA monitoring. A trust plane runs on the DON and is the only component allowed to decide an outcome: it fetches independent data sources in parallel, normalizes each answer to a canonical outcome, requires quorum, and fails closed when sources disagree

The Prediction Market Resolution Engine answers the question behind each of your markets, such as "Will New York Yankees win?", and delivers the answer to your platform so you can settle positions. Chainlink operates the engine and maintains the catalog of markets it resolves. Your platform lists markets from that catalog and receives their outcomes; you do not run oracle infrastructure or manage data providers.

Problem: Why resolution matters

A prediction market is only as credible as its answers. Until a market resolves, traders cannot redeem winning positions or reuse their capital. When resolution goes wrong, the cost lands on the platform:

  • Slow answers lock capital. A challenge period or a manual review queue keeps funds tied up after the outcome is already known.
  • A single source is a single point of failure. If the one API or the one person deciding outcomes is unavailable or wrong, markets stall or settle incorrectly.
  • Vague terms invite disputes. A trader who reads "Will Team A win?" without knowing the source or the tie rule can reasonably disagree with the result.

What the engine does

When an event ends, a Chainlink Runtime Environment (CRE) workflow running on a decentralized oracle network (DON) fetches the result from independent data providers. The workflow accepts the result only when the providers agree and report it as final, applies the market's rule, records a hash of the outcome onchain, and delivers the outcome to your platform.

Five steps: list a market from the Market Registry with its resolution criteria; the event ends and providers report a final result; the DON fetches independent providers, requires agreement, and applies the market's rule; the outcome is delivered to the platform; the platform settles positions.

What your platform gets

  • Answers from agreement, not from one source. At least two independent providers must agree before an outcome is accepted automatically.
  • No challenge period. Once the data providers confirm a final result and agree, the engine resolves the market. It does not wait for a proposal to go unchallenged.
  • No answer rather than a wrong answer. If providers disagree, a result is not final, or the rule cannot decide, the engine delivers nothing and keeps checking for evidence. An unsupported answer never becomes NO.
  • Resolution criteria for every market. Each market comes with a short statement of what resolves it YES, which data providers decide it, and how a tie pays out when it pays 50/50.
  • One Markets API for your whole listing. New markets appear in the Market Registry as Chainlink adds coverage. Your platform discovers them through the same API, with no per-market setup.
  • One answer for every platform. A market has one Chainlink identifier. Every platform that lists it receives the same outcome from the same evidence.

How it compares

ApproachBasis for the answerWhen the answer is usableWhen data is wrong or missing
Optimistic oracleA proposed answer, accepted if no one challenges it in timeAfter the challenge period, plus adjudication if disputedRelies on someone challenging the proposal
In-house resolution teamA staff member's reading of a sourceDepends on staffing and queueDepends on the reviewer noticing
Single data APIOne vendor's responseAs soon as the vendor reportsThe wrong value settles the market
Chainlink's Prediction Market Resolution EngineAgreement of independent providers, evaluated on a DONAfter providers confirm a final result and agreeNo outcome is delivered until evidence agrees

Who does what

ChainlinkYour platform
Sources events and markets, and publishes them in the Market RegistryLists markets from the registry
Selects and monitors data providersRuns trading, liquidity, and custody
Decides outcomes on the DON and delivers them as agreed with your platformReceives outcomes and settles positions
Monitors resolution and escalates failuresCommunicates with its traders during an incident and runs its dispute process

Chainlink currently resolves Soccer, American Football, Tennis, Formula 1, MMA, and Baseball markets. See Supported markets for market types and coverage.

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