UMA Restricts Market Proposals to Whitelisted Entities

UMA Restricts Market Proposals to Whitelisted Entities

UMA has restricted market resolution proposals to 37 whitelisted addresses through its Managed Optimistic Oracle V2, implemented on July 1, 2025, to enhance data accuracy and reduce disputes.

The update aims to improve prediction market efficiency but raises concerns over centralization, prompting mixed reactions from the community.

UMA updates its proposal process by restricting submissions to 37 whitelisted addresses, aiming to boost accuracy in DeFi platforms.

The changes involve Risk Labs and Polymarket staff to address past inaccuracies and are a part of UMIP-189 governance proposal.

Proposals Limited to 37 Whitelisted Addresses

Managed Optimistic Oracle V2 (MOOV2) by UMA restricts proposal submissions to 37 whitelisted addresses. The change aims to enhance accuracy and reduce disputes in DeFi prediction platforms like Polymarket.

Involving Risk Labs and Polymarket staff, this measure responds to past inaccuracies. The UMIP-189 governance proposal, ratified on August 6, and executed on July 1, set this framework in place.

Community Divided Over Whitelisting Move

Community opinions are divided, with supporters emphasizing increased precision, while critics highlight worries over centralization. Polymarket assets, including Ethereum-based tokens, will likely experience enhanced data reliability. The new system is expected to reduce early proposal disputes and improve market efficiency.

Expected financial outcomes include decreased resolution-related losses. Previous market inefficiencies resulted in financial setbacks. Similar measures seen in MakerDAOโ€™s curated feeds and Synthetixโ€™s oracle upgrades offer insights into potential benefits.

Expert Insights on Centralization and Automation

Previous UMA models allowed broader proposal input, leading to inaccurate and premature actions. This mirrors earlier DeFi approaches like MakerDAO and Synthetix, emphasizing trusted sources over open processes.

Industry expert analysis suggests that while market integrity may improve, careful monitoring of centralization effects is necessary. Ongoing developments, like UMAโ€™s AI experiments, highlight a trend towards automating proposer roles.

โ€œThe change aims to decrease proposal errors and improve overall market efficiency for non-contentious event settlements while preserving the ability of the wider community to dispute outcomes.โ€ โ€“ Risk Labs, Core Development Team, UMA
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