Pricing Data and the Role of Oracles
Introduction
IntentX offers a unique approach to pricing data, primarily driven by the function of solvers, who compete to provide the most competitive and accurate quotes. IntentX does not mandate data streaming from any one source (i.e. CEXs). Instead, it allows solvers the flexibility to stream quotes from various sources, including but not limited to CEXs and DEXs, thereby reflecting broader market conditions.
This openness allows solvers to source liquidity from the most plentiful and cheap locations to offer the best order execution to traders.
Pricing Data Source
Solvers-Driven Quotes: At the core of IntentX's pricing data are the Solvers, who actively stream quotes to the platform. These Solvers have the liberty to derive their data from multiple sources, ensuring that the prices on IntentX are not only competitive but also an accurate reflection of the market dynamics.
Data Accuracy: Since Solvers compete to offer the best quotes, the pricing data on IntentX is both reliable and timely. This competitive environment minimizes slippage, providing traders with a seamless and efficient trading experience.
The Role of Oracles
Dispute Resolution: Oracles at IntentX are not primarily engaged in data verification, but play a crucial role in dispute resolution. They step in as authoritative entities in rare cases of disagreements or uncertainties regarding pricing data, ensuring fair and transparent trading practices.
Liquidation and Account Health: Oracles are instrumental in the liquidation process when a party's margin falls below the required level. They evaluate account and position health using oracle pricing, initiating liquidation through a neutral third party when necessary. This mechanism ensures that the collateral deposited is adequate and won't lead to immediate account liquidation.
Benefits of the Approach
Reliability: The competitive environment among Solvers ensures that traders on IntentX have access to reliable and accurate pricing information, fostering confidence in the platform's trading environment.
Security: With oracles acting as neutral third parties in the liquidation process and dispute resolution, trading on IntentX is secure. This structure protects traders from potential manipulation, ensuring fair and transparent settlement of trades.
Efficiency: The Solver-driven approach to pricing data ensures efficient and responsive trading services on IntentX, characterized by minimal latency and maximum accuracy in pricing.
Conclusion
IntentX’s innovative approach to pricing data, driven by the competitive function of Solvers and supported by the role of oracles, offers a secure, reliable, and efficient trading environment for users. This structure, which allows for flexibility and competition among Solvers while utilizing oracles for liquidation and dispute resolution, makes IntentX a resilient and fair platform that truly reflects market conditions.
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