Smart Contracts

Contract Architecture

The BaseCase protocol comprises a set of interconnected smart contracts deployed on Base (Ethereum L2).

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Core Contracts

ShadowMarket

Primary contract managing the bonding curve phase and shadow share accounting.

interface IShadowMarket {
    // State queries
    function virtualYes() external view returns (uint256);
    function virtualNo() external view returns (uint256);
    function vaultBalance() external view returns (uint256);
    function totalShadowYes() external view returns (uint256);
    function totalShadowNo() external view returns (uint256);
    function solvencyPercent() external view returns (uint256);
    
    // Trading
    function buyShadowYes(uint256 usdcAmount) external returns (uint256 shares);
    function buyShadowNo(uint256 usdcAmount) external returns (uint256 shares);
    function sellShadowYes(uint256 shares) external returns (uint256 payout);
    function sellShadowNo(uint256 shares) external returns (uint256 payout);
    
    // Graduation
    function canGraduate() external view returns (bool);
    function graduate() external;
}

MarketFactory

Factory contract for deploying new prediction markets.

interface IMarketFactory {
    function createMarket(
        string calldata question,
        uint256 endTime,
        uint256 bondingDuration
    ) external returns (address market);
    
    function getMarkets() external view returns (address[] memory);
    function getMarketCount() external view returns (uint256);
}

GraduationManager

Handles the graduation process and Order Book initialization.

interface IGraduationManager {
    function mintOutcomeTokens(address market) external;
    function enableOrderBook(address market) external;
    function setTradingActive(address market) external;
}

OutcomeToken

ERC-20 token contract for YES and NO outcome tokens. Minted at market creation as soulbound, become transferable at graduation.

interface IOutcomeToken {
    function mint(address to, uint256 amount) external;
    function burn(address from, uint256 amount) external;
    function marketId() external view returns (bytes32);
    function isYes() external view returns (bool);
    function setSoulbound(bool _soulbound) external;
}

Complete Sets

Post-graduation liquidity mechanism allowing users to mint/redeem YES+NO pairs.

// Mint 1 YES + 1 NO for $1 USDC
function mintCompleteSet(uint256 amount) external;

// Redeem 1 YES + 1 NO for $1 USDC
function redeemCompleteSet(uint256 amount) external;

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External Dependencies

Contract	Address (Base)	Description
USDC	0x833589fCD6eDb6E08f4c7C32D4f71b54bdA02913	Collateral token
UMA Oracle V3	0xfb55F43fB9F48F63f9269DB7Dde3BbBe1ebDC0dE	Resolution oracle (mainnet)

[!NOTE] Testnet uses LocalResolver with admin-based dispute resolution instead of UMA Oracle.

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Deployment Addresses

Contract	Address	Status
MarketFactory	TBD	Pending deployment
GraduationManager	TBD	Pending deployment
TokenWrapper	TBD	Pending deployment

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Configuration Parameters

Parameter	Value	Description
INITIAL_VIRTUAL_RESERVE	1,000	Starting vYES and vNO
bondingTarget	1,000 USDC (default)	Minimum vault for graduation (admin-configurable: $100-$100k)
TRADE_FEE_BPS	0	No fees during bonding
GRADUATION_FEE_BPS	200	2% graduation fee
MIN_SIDE_RATIO	2000	20% minimum on each side (basis points)
MIN_BONDING_DURATION	1 day	Minimum bonding period
MAX_BONDING_DURATION	30 days	Maximum bonding period

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Events

// ShadowMarket events
event ShadowBuy(address indexed user, bool isYes, uint256 amount, uint256 shares);
event ShadowSell(address indexed user, bool isYes, uint256 shares, uint256 payout);
event MarketGraduated(uint256 vaultBalance, uint256 totalYes, uint256 totalNo);

// MarketFactory events
event MarketCreated(address indexed market, string question, uint256 endTime);

// Resolution events
event OutcomeProposed(bytes32 assertionId, bool outcome);
event OutcomeResolved(bool outcome);

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Security Considerations

Access Control

Function	Access
buyShadowYes/No	Public
sellShadowYes/No	Public
graduate	Public (permissionless)
setParameters	Owner only
pause/unpause	Owner only

Reentrancy Protection

All state-modifying functions implement the checks-effects-interactions pattern and use reentrancy guards where applicable.

Oracle Trust

Market resolution relies on UMA Optimistic Oracle (mainnet) or LocalResolver (testnet). Users should understand the dispute resolution mechanism and associated risks.

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Admin Functions

Function	Description
setBondingTarget(uint256)	Set minimum vault for graduation ($100-$100k)
setBondingDurations(...)	Configure bonding period limits
setOracleResolver(address)	Set resolution oracle address