Polymarket: Example

Example: pricing & arbitrage

• Polymarket (Validator midpoint, 0–100 normalized): 64.0

• Trove Mark: 59.5

• EMA (illustrative): 62.0

• Oracle (illustrative): (59.5 + 64.0 + 62.0)/3 = 61.8

Here, Mark < Oracle → longs receive funding.

Step-by-step intuition

1. Polymarket midpoint implies “YES ~64%”

2. Trove is trading “YES ~59.5%”

3. Oracle blends these with a smoother to get 61.8

4. Since Trove Mark is below Oracle, funding should pay longs to pull Mark upward

Arbitrage desk might buy Trove (59.5) and sell Polymarket (≈64.0), earning funding + potential basis convergence.

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Lifecycle & settlement

• Listing:

  • Only high-attention Polymarket markets with ≥6 months horizon

• During life:

  • Standard Trove perp trading (Market/Limit), hourly funding cycles, risk controls

• At event resolution:

  • Oracle settles to 0 or 100 based on Polymarket’s official market resolution (via UMA’s Optimistic Oracle process); Trove perps remain cash-settled (no physical delivery) Polymarket Documentation

What “cash-settled” implies mechanically

At resolution:

• the oracle value hard-sets to 0 or 100

• all open positions are marked at that terminal value

• PnL is realized in USDH through standard perp settlement logic No delivery, no share redemption requirement for the end trader on Trove.

Exact resolution sources & timestamps are shown on the Transparency Dashboard, with the ruleset link per market.