Polymarket Partners with Chainlink to Improve Market Resolution Accuracy

Markets 2025-09-13 12:15

Polymarket Partners with Chainlink to Improve Market Resolution Accuracy

The partnership, announced on September 12, 2025, aims to make betting outcomes faster and more reliable by using automated data feeds instead of human voting.

Polymarket, the world’s largest prediction market platform, has joined forces with blockchain oracle network Chainlink to fix a major problem that has plagued prediction markets for years.

The integration is already working on Polygon’s blockchain network, allowing users to bet on crypto price movements with near-instant results. This marks a significant upgrade from Polymarket’s previous system, which often faced delays and disputes when determining winners.

The Problem with Traditional Market Resolution

Prediction markets have struggled with a core issue: how to fairly determine the outcome of bets. Previously, Polymarket relied on community voting and third-party systems like UMA’s oracle to decide winners. This approach led to several problems.

Users often complained about slow payouts when results were unclear. Some controversial bets, including markets about Ukrainian President Volodymyr Zelenskyy’s clothing choices, sparked heated debates about manipulation. These disputes damaged trust in the platform and frustrated users who wanted quick, fair results.

The old system also made Polymarket vulnerable to “governance attacks,” where bad actors could potentially influence outcomes by gaming the voting process. These issues highlighted the need for a more reliable solution.

How Chainlink’s Technology Works

Chainlink operates as a bridge between blockchain networks and real-world information. Its decentralized network of computers collects data from multiple sources, verifies the information, and delivers it to smart contracts automatically.

The system combines two key technologies. Chainlink Data Streams provide fast, timestamped price information from trusted sources. Chainlink Automation then triggers payouts at predetermined times based on this data.

For crypto betting markets, this means a Bitcoin price prediction can settle automatically when the time expires, using verified price data from multiple exchanges. No human voting or manual intervention is required.

Sergey Nazarov, Chainlink’s co-founder, explained that the partnership turns “prediction markets into reliable, real-time signals the world can trust.”

Immediate Benefits for Users

The new system has already launched 15-minute crypto markets where users can bet on short-term price movements. These markets settle almost instantly when time runs out, eliminating the waiting periods that frustrated users in the past.

Polymarket Partners with Chainlink to Improve Market Resolution Accuracy

Source: @chainlink

The automated system also reduces the chance of disputes. Since outcomes are determined by verified data rather than human judgment, there’s less room for arguments about results. This should lead to faster payouts and fewer complaints from users.

For Polymarket, the upgrade addresses credibility concerns that have hurt prediction markets. By removing human bias from the resolution process, the platform can offer more trustworthy betting experiences.

Expanding Beyond Price Bets

While the partnership currently focuses on asset pricing markets, both companies plan to expand the system to other types of bets. The challenge lies in applying automated resolution to more subjective questions that don’t have clear numerical answers.

Traditional prediction markets about election outcomes, entertainment awards, or current events often require human judgment to determine winners. Polymarket and Chainlink are exploring ways to bring more objectivity to these markets while reducing reliance on social voting.

This expansion could transform how prediction markets handle complex real-world events, potentially making them more reliable sources of information about future outcomes.

Strategic Timing and Market Position

The partnership comes as Polymarket prepares to return to the US market after a three-year absence. The company recently spent $112 million to acquire QCEX, a regulated exchange that gives it the legal foundation to serve American customers again.

Polymarket had to leave the US market in 2022 after the Commodity Futures Trading Commission fined the company $1.4 million for operating without proper registration. The regulatory issues forced the platform to block American users while continuing to operate internationally.

The timing of the Chainlink partnership appears strategic. As Polymarket seeks to rebuild trust with regulators and users, the automated resolution system provides concrete evidence of the platform’s commitment to fairness and transparency.

Chainlink brings significant credibility to the partnership. The oracle network secures over $93 billion in total value and processes trillions of dollars in blockchain transactions. Major financial institutions including JPMorgan, Mastercard, and UBS already rely on Chainlink’s technology.

Looking Forward

The partnership positions both companies at the center of two growing trends: the tokenization of real-world assets and the institutional adoption of blockchain technology. Chainlink has recently secured partnerships with major financial institutions and government agencies, while Polymarket has attracted billions of dollars in betting volume.

As prediction markets mature, automated resolution systems could become the industry standard. The success of this partnership may influence how other betting platforms handle outcome determination, potentially leading to more reliable and trustworthy prediction markets across the industry.

The integration represents more than just a technical upgrade—it’s a step toward making prediction markets a legitimate source of real-time information about future events, backed by cryptographic proof rather than human opinion.

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This content is for informational purposes only and does not constitute investment advice.

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