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Case Study

SignalRelay / Alphanet Core

Polymarket signal oracle that sells its Bayesian edge for $0.01 USDC per call over x402 on Base, now with a public track record joined to real market resolutions. Alphanet Core, its diverged equities-data twin, verifies x402 settlement on-chain and books its own unit-economics P&L.

Executive Summary

SignalRelay is an autonomous Polymarket sentiment oracle that earns USDC by selling its Bayesian trading edge: any agent can pay $0.01 USDC on Base via x402 and get a calibrated signal. Since the hackathon it grew the thing paid signals actually need — a public track record where every logged signal is joined to the market's real resolution, so buyers can check calibration before paying. Alphanet Core, its diverged equities-data twin, verifies x402 settlement on-chain via raw JSON-RPC and books its own unit-economics P&L.

Problem & Constraints

Downstream trading agents need probabilistic edge, not subscriptions — but nobody should buy signals from an oracle that can't prove its history. Constraints: the LLM only parses sentiment (all math is deterministic and clamped), demo data is labeled demo end-to-end, and verified vs unverified payments are never conflated.

Architecture

Provider (FastAPI + x402 ASGI) watches Polymarket + news → clamped Bayesian posterior → paywalled rationale endpoint → signal log joined to real Polymarket resolutions → public track-record + calibration pages. Alphanet: settlement verification reads receipt tx hashes on-chain (fail-safe: unverified stays unverified) with global tx-hash consumption against replay.

Methodology

  • LLM as parser only; deterministic Bayesian update, posterior clamped away from 0/1 so one headline can never produce certainty
  • Track-record system: signals logged at emit time, joined to actual market resolutions, with a calibration view — no self-graded scores
  • chf research engine underneath: point-in-time universes, leakage-audited features, deterministic seeds, in-sample/out-of-sample tearsheet
  • x402 fail-hard startup (no silent free mode); the free demo route returns a truncated teaser, not the paid payload
  • Alphanet receipt verification reads the chain directly (raw JSON-RPC), with replay protection via global tx-hash consumption — a review-caught exploit, fixed and re-walked
  • Paper trading by default; LIVE mode requires an explicit key behind per-trade caps, drawdown limits, and a kill switch

Results & Metrics

MetricResult
Payment$0.01 USDC/call, live-verified debit on Base Sepolia
Track recordSignals joined to real Polymarket resolutions
chf research tests246 passed (full suite)
Backend tests82 passed
Alphanet tests85 passed, incl. settlement replay coverage

Tech Stack

Python, FastAPI, x402, Privy, Base, USDC, Polymarket API, Postgres/SQLite

Future Work

Mainnet pricing + abuse limits, slippage model for paper fills, multi-market signal catalog.

Links