Hey!
Today we are going to talk about our solutions to process users’ orders and enable a fair margin trade system without front-running through our dark oracle stack!
A 🧵
Today we are going to talk about our solutions to process users’ orders and enable a fair margin trade system without front-running through our dark oracle stack!
A 🧵
As you might know, a known issue regarding Perp Dexs is the risk of front running if data is available on-chain
Thus, we’ve opted for an off-chain oracle to price orders.
The dark oracle will aggregate prices from on-chain (DEX) and off-chain (CEX) price feeds to process orders
Thus, we’ve opted for an off-chain oracle to price orders.
The dark oracle will aggregate prices from on-chain (DEX) and off-chain (CEX) price feeds to process orders
An issue with this type of solution is the need of a trusted party to price orders; to solve it, we propose the price validation to be passed by the keeper on-chain with the chainlink price feeds.
If the price passed isn’t within a threshold, then the order will not be processed
If the price passed isn’t within a threshold, then the order will not be processed
On top of that, if the off-chain oracle is offline for any reason, users can still process orders at any given #Chainlink price, but they will have to wait 5 minutes from the order being placed for this to happen, as orders, by default, will be processed by the keeper
If this doesn’t happen within 5 minutes, users can process their order manually using the #Chainlink price feed.
Thus, traders have an array of solutions to ensure their orders can go through without the risk of forced liquidation.
Thus, traders have an array of solutions to ensure their orders can go through without the risk of forced liquidation.
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