Digitex Futures Exchange has been seeing a lot of innovative growth in recent times. The platform is looking to create not only a highly secured platform but one that is also credible and transparent.
With this in mind, Digitex has deployed well-known Chainlink price reference contracts on its platform. The Oracle will serve as a reference point and a support for its already existing price feeds. Also, this will result in ensuring the price feeds remain secure, transparent, and reliable.
This partnership is also a landmark one as it is the first-ever integration of decentralized Oracles on a centralized platform.
Advantages of Chainlink Oracle on Digitex
According to a Digitex blog post, the Chainlink Oracle would provide much-needed transparency and credibility on its futures contract platform. Moreover, it would protect users on Digitex from price manipulation. Also, it would ensure that they “don’t become overexposed to slippage should our internal price feeds deviate too far from the global market price”. And Digitex considers Chainlink’s credible and impermeable price reference contracts would help achieve this.
Digitex, before partnering with Chainlink, made use of its own internal price feed. To ensure credibility, it also developed an index built on several “trusted spot market sources”. Irrespective of these, its price feeds still suffered from several vulnerabilities, especially when exchange manipulation or “faulty data sources” occurs.
Seeing this as a major issue, the futures contracts platform decided to employ the services of a highly reliable and tamper-proof price anchor. According to it, the integration of Chainlink price reference would serve as a reference and a pointer to detect price deviations effectively.
The blog post further disclosed that Digitex had done thorough research before zeroing on its choice of price reference contract. According to its findings, Chainlink’s price feeds outranked all its other options. Moreover, the platform’s research showed it to be the most secure and reliable price feed available in the market today.
Notably, Chainlink is renowned for securely linking smart contracts with off-chain data. Also, its price contracts contain a wide range of price feeds of all kinds of crypto trading pairs. The price Oracle platform also makes use of “a decentralized network of independent, Sybil resistant nodes”. The nodes harvest price data from several top data aggregators to produce a reliable global market price for trading pairs.
The blog post also specified three important features of Chainlink price reference that would be of advantage for Digitex. These features are:
- Valid prices
- Liveness guarantees
Furthermore, it completely eliminates the ability of malicious nodes to influence price data. And therefore it ensures that all price references are credible and of high standards. To remind, several leading DeFi (decentralized finance) applications rely on Chainlink’s infrastructure.
According to the blog post, Digitex would start by employing Chainlink on its platform for its BTC/USD perpetual contracts. Plans are, however, in place to add more price feeds soon.
The founder and CEO of Digitex, Adam Todd, affirmed that Chainlink’s price data would provide Digitex with “stronger security and performance guarantees to our users”. Also, he noted that the partnership would facilitate the realization of his platform’s goal to “revolutionize futures trading”.
Chainlink price feed is currently employed by top industry players such as Tezos, Kava, Contentos, Celsius, Swipe, Solana, etc. The price Oracle platform also recently announced the launch of its VRF protocol.