Synthetic Outcome Tokens (SOTs)

Standardizing the Definition of Risk

In the current prediction market landscape, a position is defined differently across platforms. On Polymarket, it is a Conditional Token (ERC-1155) on Polygon. On Kalshi, it is a database entry regulated by the CFTC. On Limitless, it is a smart contract state on the Base network.

Oraclyst introduces Synthetic Outcome Tokens (SOTs) to unify these disparate standards into a single, fungible, and tradeable asset class.

How SOTs Work

An SOT is an ERC-20 token minted on the Base blockchain that represents a 1:1 claim on a real underlying position held in the Oraclyst Vaults.

1. Minting: When a user executes a trade on Oraclyst, the protocol instantly purchases the underlying asset (e.g., a "Yes" share on Kalshi). Simultaneously, the protocol mints an equivalent SOT (e.g., sot-TRUMP-WIN-2024) and deposits it into the user's wallet.

2. Redemption: At any time, a user can burn their SOT to redeem the underlying value. If the event has resolved, the user receives the payout (1.00 USDC). If the event is still active, the user receives the current market value of the underlying share.

3. Composability: Because SOTs are standard ERC-20 tokens, they can be used within the broader DeFi ecosystem. Users can transfer them to other wallets, use them as collateral in lending protocols, or trade them on secondary decentralized exchanges (DEXs) like Aerodrome.

Naming Convention: SOT---

• Example: SOT-BTC100K-YES-DEC31