UMA 2.0 went live at the end of March, implementing a rewards system where users will earn regardless of the number of votes, with the possibility to earn more by helping the Optimistic Oracle to settle disputes. UMA holders can earn rewards from staking and voting, while the Optimistic Oracle receives a brand new work force!
The stakers are required to vote on disputes, and reveal the vote one day later. The vote/reveal system was implemented for full transparency, as no one can know how others voted until the choice is revealed and valid on the blockchain. The votes that are not revealed will not be calculated in the dispute.
WE WANT YOU TO STAKE YOUR UMA!
The Optimistic Oracle differs from Chainlink and other traditional oracles because it has the ability to find the truth for ANY outcome, easily solving "gray area" disputes when there is no categorical right or wrong case.
The Oracle was upgraded to V2 and is now able to validated easier if statements are either true or false! This means that developers can use any data source, such as an API or other data feed, and use UMA to both put the data on-chain and publicly guarantee it against manipulation.
In OOV2 a request is made to the oracle by a dapp contract and parameters are set for the request using set.. functions. Any user can propose a price through UMA's frontend. In V3 these 2 steps are rolled into one assertion that both defines the parameters and makes an assertion.
Time came to analyze the results, four months and many votes later! The first task was to claim the rewards, and 181.98 $UMA earned in 120 days is a big win! I would probably earned more if I didn't skipped few votes when gwei went crazy and a transaction fee was above 100 dollars.
Voting requires gas, but the ETH spent on voting and revealing the vote is paid back on a monthly basis. The fee for claiming the rewards came from my pocket, but $2.94 is as good as it can get on mainnet!
Claimed and staked the rewards, taking advantage of the low gwei. Now I was waiting for disputes, as the transaction fees were once again affordable.
Got slashed badly when the gas fees where insane, and my farming penalty turned into -0.77% after couldn't vote on six disputes. My $ETH balance couldn't afford the voting, and the recurring reveal of the votes. I must say I hated the notification that announced a new dispute, knowing that my earnings based on participation will go from negative ... to worst!
It slowly got better and I was happy to be back on track with voting a dispute related to North Korea missile testing. The correct answer was YES, as this had large coverage on media, and voting correctly on both disputes helped me earn 2.6 UMA.
More disputes and more votes later, and I managed to maintain a decent voting standard. My current APY is 24.76%, with a penalty of -0.39% due to some votes I missed.
At one point in August I failed to vote for 5 simple Across disputes, and got slashed 2.09 UMA for each. The earning based on participation went negative, with 8.16 UMA lost for failing to vote and reveal. However, the emissions rewards weren't massively affected, as the overall APY return is still juicy!
My vote attendance is 75%, doing my part in settling 48 out of 64 disputes. However, my right/wrong ratio is 100% ... voting correctly in all the disputes I took part.
I was happy that September was free of disputes, which made the farming stress free. Two more months of farming and 94 UMA available for claiming. I farmed 276 UMA in six months, and my goal is to vote in all the disputes that will arise by the end of 2023. I must improve my APY and the rewards based on participation.
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