Smart Contract Layer
The smart contract layer serves as the foundation of the Merin system, responsible for event definition, market creation, token issuance, and settlement logic.
1 Event and Market Structure
Each predictive event is defined as a standardized Market Object:
EventID → {Question, Resolution Source, Expiration, Collateral Type, Payout Structure}
Question: Initiated by users or the governance DAO; can be binary, range-based, or multiple-choice events.
Resolution Source: Bound to one or more oracle feeds.
Collateral Type: Supports stablecoins or native tokens as collateral assets.
Payout Structure: Issued in the form of “YES/NO Tokens” or “Multi-Outcome Tokens.”
All markets are created via the Merin Factory Contract module to ensure structural consistency and settlement security.
2 Automated Settlement and Verifiable Proofs
Market settlement logic is executed by the Settlement Contract:
Once oracles return event results, the system automatically calculates the token share ratio between winning and losing sides.
The zk-Verify module performs zero-knowledge verification on the oracle-submitted data hash, ensuring the data source has not been tampered with.
Settlement results are written into an on-chain Merkle Tree, and a ZK-SNARK proof is generated for third-party verification.
This mechanism achieves “transparent yet non-intrusive” on-chain settlement: Users can verify the correctness of results without inferring specific account positions or trading details.
3 Modular Interfaces and Cross-Chain Compatibility
The smart contracts support interaction with both EVM and non-EVM ecosystems through the Merin-Bridge SDK:
Natively compatible with Ethereum, Arbitrum, BNB Chain, and Solana;
Supports Layer2 batch settlements to reduce gas costs;
Can be embedded into any DApp to enable event trading functionality via the Merin SDK.
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