What Underlay is
An ERC-4626 vault and settlement layer that underwrites multi-outcome positions. It prices risk, enforces reserve and liability limits, and releases settlement through Chainlink CRE.
Mechanics
The vault, the reserve, and the settlement layer.
Underlay prices multi-outcome positions, holds reserves for payout exposure, and settles through a delay-aware onchain workflow. All parameters are protocol config — nothing is hidden.
What Underlay is not
Not a prediction market, not an offchain bookmaker, not a parlay platform. Underlay does not set odds or run markets — Polymarket does that. Underlay underwrites the combined exposure.
Vault Config
All parameters are set at deployment and readable onchain.
Max TVL
$200
Min activation
$20.00
Max liability
40%
Reserve split
20%
Max payout
$8.00
Max stake
$2.00
World ID gate
$1.00
Leg rules
1–10 outcomes per position
Low-risk delay
30s
High-risk delay
120s
Position lifecycle
01
Trader selects outcomes from Polymarket markets via CLOB API.
02
0G Compute scores position risk via AI inference. 0G Storage pins the audit payload.
03
Vault prices the combined position using utilisation, correlation factor, and config caps.
04
Position is locked with a quote and stake is transferred.
05
Chainlink CRE waits through the risk-tier delay window.
06
Reserve pays out winning positions. Losing stakes sweep into the vault.
Trust model
—
Canonical position state lives onchain — no offchain database required.
—
Audit receipts and risk payloads are pinned to 0G Storage.
—
World ID prevents Sybil attacks above the stake gate.
—
Draft position state lives only in the browser until submission.
—
Reserve ratio and liability cap are enforced by smart contract, not application logic.
—
Settlement delay windows are encoded in protocol config, not business rules.
Capital model
Reserve
Idle / Deployed
A fixed reserve portion of vault TVL is held as immediate payout liquidity. The remaining idle capital is eligible for Aave yield routing once integration is live.
Testnet exception: this Base Sepolia deployment uses faucet USDC so the demo can be activated with public faucet liquidity. Because that asset is not the Aave-listed reserve on Base Sepolia, Aave routing is disabled on this environment while the vault, reserve, liability, and settlement flows remain the same.
Infrastructure
Polymarket CLOB API
Reference signal and resolution source
Infrastructure
0G Compute
AI inference for risk scoring
Infrastructure
0G Storage
Immutable risk and audit receipts
Infrastructure
World ID
Sybil resistance above the stake gate
Infrastructure
Chainlink CRE
Settlement orchestration and delay flow
Infrastructure
Aave V3
Yield routing for idle vault capital
Infrastructure
Reown AppKit
Wallet connection through wagmi and viem