🔮Oracles

In decentralized finance (DeFi), accurate and reliable price data is crucial for the seamless operation of decentralized exchanges (DEXs). Price oracles serve as the bridge between off-chain data sources and on-chain smart contracts, providing real-time asset pricing to ensure fair and transparent trading.

Role of Price Oracles in Our DEX

Our platform integrates advanced price oracle solutions to deliver precise and up-to-date market information. This integration supports various functionalities, including:

• Accurate Pricing: Ensures that token swaps and trades reflect current market values, protecting users from price discrepancies.

• Risk Management: Provides essential data for features like margin trading and liquidation processes, maintaining platform stability.

• Enhanced Security: Reduces vulnerabilities to price manipulation by sourcing data from multiple reputable providers.

Integrated Oracle Solutions

To achieve optimal performance and reliability, our DEX utilizes the following oracle services:

1. Stork

   • Ultra-Low Latency: Delivers sub-millisecond updates, making it ideal for high-frequency trading and volatile markets.

   • Data Aggregation: Collects price data off-chain from major exchanges, validating it through digital signatures and WebSocket connections before transmitting to the blockchain.

   • Applications: Supports real-time trading, futures, and derivatives markets.

2. Pyth Network

   • Broad Data Sources: Aggregates information from over 65 sources, including crypto exchanges, stock markets, and forex, ensuring extensive coverage.

   • High-Frequency Updates: Capable of processing over 700 price updates per second, utilizing Solana’s fast blockchain infrastructure for sub-second updates.

   • Cross-Chain Compatibility: Utilizes the Wormhole protocol for secure data transmission across blockchains, enabling seamless integration with the TON blockchain.

How Prices Are Formed on Our Platform

We calculate an index price by aggregating data from both Stork and Pyth Network. This index considers trading volumes from multiple exchanges to create a weighted average price, filtering out anomalies to maintain data integrity. Additionally, the market price is adjusted dynamically based on real-time open interest, reflecting aggregated trading positions. This dual pricing approach ensures accurate representation of both long-term trends and short-term market shifts, providing fair and consistent trading conditions.

By integrating these advanced oracle solutions, our DEX offers reliable, real-time pricing, optimizing the trading experience on the TON blockchain.