UniDex Integrates Chainlink On Mainnet to Secure Settlement Prices for DeFi Products
We are happy to announce that UniDex has successfully integrated Chainlink oracles on mainnet to obtain secure and reliable Price Feeds within our DeFi trading terminal. These Chainlink-powered decentralized oracle networks ensure fair market trading and settlement of leveraged positions, prediction markets, options contracts, and UniDex synthetic concepts.
At present, UniDex is using USD-denominated Chainlink Price Feeds for ETH, BTC, DOT, LINK, SNX, YFI, XAG, XAU, and TSLA which allow our users to trade tokenized leveraged assets. In the future, we plan to extend these feeds to support options trading. We also plan to launch multiple other tradeable markets like ETH Volatility indexes, tokenized real-world assets like rare collectibles or cars, and the derivatives on the expected average fees paid on certain blockchains.
Integrating Chainlink for Decentralized Contract Settlement
For far too long, traditional finance has offered interesting and complex trading products. However, those exotic products have yet to be created for the cryptocurrency ecosystem. UniDex aims to solve that problem by providing a unique all-in-one solution for traders’ everyday needs and functions. However, we believe traders should be able to take positions on whatever they want without constraints, including some of the most unique concepts we dub “UniDex synthetic concepts’’.
Using Chainlink, we can provide users with the ability to trade complex products that are based solely around reliable data feeds. By relying on secure data instead of being restricted to only trading on-chain assets, traders can get short and long financial exposure to a much wider range of concepts like the rise and fall of Bitcoin dominance, Bitcoin fees, or other asset volatility metrics.
As a simple behind the scenes overview, here is a breakdown on how we use these Chainlink Price Feeds to let users trade these derivatives or market pairs across a suite of products connected to UniDex.
Users can trade options, take bets, purchase leveraged positions, or partake in various other products on UniDex.
- Leveraged Positions — UniDex uses the X2 protocol made by XVIX to allow for rebasing. Users can hedge or work with the trend by taking long or short positions, with the Chainlink oracle network supplying up-to-date market data used to rebase traders’ positions.
- Options Contracts — UniDex offers options contracts on top of the Gamma protocol built by Opyn. Chainlink Price Feeds are used to determine the correct payout on positions at the time of the option’s expiry.
- Prediction Markets — Users can take binary positions that leverage Chainlink-supplied data feeds to establish a settlement price and trigger the correct payout.
We picked Chainlink as our go-to oracle solution for UniDex because we as traders know how important it is for users to get correct and verifiable settlement prices in a decentralized environment. Chainlink provides a way for UniDex to offer these products to the market with high integrity, knowing we are supported by premium data and secure data delivery.
Each Chainlink Price Feed is backed by numerous security review oracle nodes run by experienced blockchain DevOps. Each node independently calls market data from multiple data aggregators, ensuring that each node response is reliable and reflective of broad volume-adjusted market coverage. Node responses are then aggregated together to form a single, decentralized price point stored on-chain in a Chainlink reference contract, which can be easily called by UniDex at any time. This design ensures a Sybil-resistant and tamperproof architecture with high-quality data, protecting users from flash loan-based attacks and availability issues that centralized or single-source price oracles face. In addition, each Price Feed is accompanied by a transparent visualization derived from on-chain data that anybody can use to independently monitor and verify the performance of nodes and the oracle network as a whole.
“Chainlink provides a framework for Ethereum developers to build on-chain products that allow traders to reliably take positions on any market or concept like never before. No longer do traders have to be worried about the limitations of a decentralized system, as they can use Chainlink data oracles to quickly create derivatives products that allow them to gain exposure to almost any types of market situation. Traders deserve a better way to trade the market and with Chainlink, UniDex can finally offer that solution while still ensuring accurate and secure price data for settling trades, whether it be token swaps, leveraged assets, options contracts, or future blockchain performance derivatives.”. — UniDex Founder
Traders that are interested in what we are building can try our open beta at https://unidexbeta.app/ and see what we’re building here for traders across the world. Let us know what type of assets you want to see tradeable and brought on-chain. We want to be an exchange by traders, with traders, and for traders. With your help, we will deliver a paradise for traders with how they want to trade.
Chainlink is the most widely used and secure way to power universally connected smart contracts. With Chainlink, developers can connect any blockchain with high-quality data sources from other blockchains as well as real-world data. Managed by a global, decentralized community of hundreds of thousands of people, Chainlink is introducing a fairer model for contracts. Its network currently secures billions of dollars in value for smart contracts across the decentralized finance (DeFi), insurance and gaming ecosystems, among others.
Chainlink is trusted by hundreds of organizations to deliver definitive truth via secure, reliable data feeds. To learn more, visit chain.link, subscribe to the Chainlink newsletter, and follow @chainlink on Twitter.
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