Single Instance

Oracle game parameters

Each report number (Report #8135 here) is its own oracle game, called a reportId. If a report hasn't yet been submitted for a given reportId, the Single Instance page will look like this:

Net reward to report is the bounty minus any gas fees. Note that this is just the immediate reward to report and does not include possible losses from getting swapped against later. The bounty starts low and increases over time. It can be paid in any token, but you will likely see mostly OP bounties which are sourced from the Optimism growth grant. Liquidity is the amount of Token 1 you must put up, USDC here. You must also put up a similar amount of value in Token 2 (WETH) to complete the initial report. Settlement time is the maximum amount of time your tokens are locked up for. The UI ensures you cannot participate in games where the settlement time is longer than a day. Dispute delay is not extremely relevant to an initial reporter: this is simply how long swappers must wait before they can swap against your reported token amounts. Swap fee is how much you get paid when someone swaps against you, as a % of one of your reported amounts, in this case ~$100. Burn fee is how much of the swapper's capital is burned when swapping against you, as a % of one of your reported amount. Multiplier is how much extra capital a swapper has to put up in the new report if they choose to swap against you. Callback gas limit is how much gas the final transaction to free locked tokens at the end of the settlement time must use. As long as it is not too high, this is not super relevant to an initial reporter. The UI ensures you cannot participate in games where callback gas limit is too high for safety. The blue checkmark next to Report #8135 indicates the token pairs are whitelisted. If the token pairs are not whitelisted, i.e. the checkmark is missing, you must ensure the token addresses are correct and not malicious or risk losing funds. If you want to submit an initial report, you hit the green Report button.

Submitting an initial report

If you hit the green Report button, the UI will look like this:

For this oracle game (#8135), you would choose the amount of WETH that equals 100 USDC in value or risk instantly losing money to a swap. You earn the Net reward (~$0.44 here) for initial reporting. For oracle games featuring WETH and USDC tokens, there is an Auto button that calculates how much WETH to supply given the ETH/USD price on Coinbase. For other oracle games, there is no Auto button and the correct amount must be entered manually. Breakeven volatility represents the the amount the token price ratio has to move over the settlement time for you to lose money to swappers after factoring in the Net reward. The larger the breakeven volatility, the better. Here, as long as the price of ETH doesn't move more than 0.44% over 10 minutes, initial reporting is profitable. Even if it does, if you don't get swapped against, you don't lose any WETH or USDC. Next, we will submit a bad initial report (using 0.027 WETH instead of 0.030289). At time of writing, ETH was trading around $3300.

Disputing

After an initial report for an oracle game has been submitted, the Single Instance page will look like this:

The report settles in 9 minutes and 36 seconds. After this point, you cannot swap against the token balances. The implied price of our bad report is $3703.70. The immediate pnl available for swapping against this report is ~$11 since ETH was actually ~$3300 at this time Anyone can now swap 0.027 WETH for 100 of the reporter's USDC. But, in order to swap against these token balances, you must yourself become a reporter. So, if you want to claim the $11, you hit the Dispute button:

Here, you must choose an amount of WETH that is equal in value to 150 USDC. The New USDC amount is 50% higher than the original 100 USDC because of the 1.5x multiplier in the oracle game. Similar to the initial report, an Auto button is available only for oracle games featuring USDC and WETH. Est. Immediate Pnl is the profit from swapping 0.027 WETH for 100 of the previous reporter's USDC. Breakeven volatility represents the the amount the token price ratio has to move over the settlement time for you to lose money to swappers after factoring in the Est. Immediate Pnl. The larger the breakeven volatility, the better. Here, as long as the price of ETH doesn't move more than 7.03% over 10 minutes, disputing is profitable. Even if it does, if you don't get swapped against, you don't lose any WETH or USDC. You Transfer In represents the token balances you need to have in your wallet to be able to complete the dispute. Here, you are swapping WETH (swapping 0.027 WETH for 100 of the previous reporter's USDC). Your Position Will Be Worth represents the token balances you receive back in 10 minutes, assuming you don't yourself later get disputed (swapped against). If you do get disputed later, you receive swap fees; however, for this specific game (and most games) they are small. After 10 minutes is up, assuming you were not disputed, typically an MEV bot will settle the oracle game and you will get your tokens back.

Settlement

Generally MEV bots settle oracle games without user intervention and the last reporter gets their tokens back without any further interaction. This is what the Single Instance page looks like once settled:

If an MEV bot doesn't pick up the settlement, there will be a green Settle button next to Report #7496 allowing you to free your funds directly from the UI.