Resolution Engine

Overview

The Resolution Engine is the most critical component of the Mouth protocol. It determines bet outcomes and ensures fair, transparent resolution.

Resolution Types

Type 1: Automatic (Oracle-Based)

For bets with quantifiable, verifiable conditions: Supported conditions:

Condition	Data Source	Example
Token price above/below X	Chainlink, Pyth	”ETH > $5,000”
FDV above/below X	CoinGecko API + oracle	”Monad FDV < $1B”
TVL above/below X	DeFi Llama API	”Aave TVL > $20B”
On-chain event occurred	RPC query	”Uniswap v4 deployed”

How it works:

At bet creation, the resolution criteria are stored as structured metadata:

{
  "type": "price_threshold",
  "asset": "ETH",
  "condition": "above",
  "threshold": 5000,
  "source": "chainlink"
}

At expiration, the engine fetches the data from the specified source
Evaluates the condition against the data
Submits the resolution on-chain

Type 2: Manual (Mouth Team)

For bets with subjective or off-chain conditions: Process:

Bet expires and is flagged in the Mouth admin dashboard
A Mouth team member reviews the bet terms and checks the outcome
Resolution is submitted via the admin dashboard
If disputeable: 48-hour dispute window starts. If disputed, the team re-reviews with additional evidence and can call reResolve() to update the outcome.
If non-disputeable: bet is immediately finalized. For PvP 1v1, the backend calls resolverClaim() to distribute funds.

Dispute Mechanism

The dispute mechanism only applies to disputeable bets. Non-disputeable bets are immediately finalized after resolution.

Window

Every disputeable resolution (automatic or manual) has a 48-hour dispute window before finalization.

Filing a Dispute

Either party clicks “Dispute” on the bet page within 48 hours
Must provide:
- Reason: Why they believe the resolution is incorrect
- Evidence: Links, screenshots, data sources supporting their claim
A dispute bond may be required in the future to prevent spam (not in v1)

Dispute Review Process

Dispute Outcomes

Outcome	Result
Dispute rejected	Original resolution stands, bet is finalized
Dispute upheld	Resolution is overturned, new outcome is set
Inconclusive	Bet is resolved as a Draw, both parties refunded

Resolution on Smart Contract

The Resolution Engine interacts with the Bet smart contract via a dedicated resolver wallet:

resolverWallet.resolve(betAddress, outcome)

The smart contract enforces:

Only the authorized resolver address can call resolve()
Resolution can only happen after the expiration timestamp
The outcome must be one of: ChallengerWins, OpponentWins, Draw
If disputeable: status → Resolved, 48-hour dispute window timer starts on-chain
If non-disputeable: status → Finalized immediately, claimable balance is snapshotted

After finalization, the resolver can optionally call resolverClaim() to batch-distribute all funds to winners (especially useful for PvP 1v1 bets). For Open PvP bets with many opponents, individual claim() calls are safer to avoid out-of-gas issues. The resolver can also:

Call reResolve() during the dispute window to update the outcome (disputeable only)
Call withdraw() after the acceptance deadline to clean up deserted bets (Pending status only)

Future: Decentralized Resolution

In future versions, Mouth may integrate decentralized arbitration for disputes:

UMA Optimistic Oracle: Propose outcomes with a dispute bond, escalate to UMA token holders if disputed
Kleros: Decentralized court system for subjective disputes
Reality.eth: Crowd-sourced oracle with economic incentives for truthful reporting

This removes the trust assumption on the Mouth team for manual resolutions.

​Overview

​Resolution Types

​Type 1: Automatic (Oracle-Based)

​Type 2: Manual (Mouth Team)

​Dispute Mechanism

​Window

​Filing a Dispute

​Dispute Review Process

​Dispute Outcomes

​Resolution on Smart Contract

​Future: Decentralized Resolution