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. One pair deployed per market 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);
}

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External Dependencies

Contract	Address (Base)	Description
USDC	0x833589fCD6eDb6E08f4c7C32D4f71b54bdA02913	Collateral token
UMA Oracle V3	0xfb55F43fB9F48F63f9269DB7Dde3BbBe1ebDC0dE	Resolution 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	100,000	Starting vYES and vNO
TRADE_FEE_BPS	200	2% fee (basis points)
GRADUATION_FEE_BPS	200	2% graduation fee
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. Users should understand the dispute resolution mechanism and associated risks.