Oracle
An Oracle is a system that provides information from the real world to the blockchain. In our case the Oracle is used to provide the settlement/liquidation price from a trusted third-party exchange.
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An Oracle is a system that provides information from the real world to the blockchain. In our case the Oracle is used to provide the settlement/liquidation price from a trusted third-party exchange.
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DMEX implements a unique approach to trading real-world and crypto assets without the actual underlying asset changing hands. Given the blockchain implementation and the use of a decentralised oracle (CHAINLINK) this trading method actually provides exactly the same trading experience while being more secure than a traditional centralised exchange.
When a position expires or reaches the liquidation price, DMEX calls on the Oracle to record the latest on the blockchain.
Only after the latest MARK PRICE is recorded on the DMEX smart contract, the position can be settled or liquidated.
The use of an Oracle is crucial to the safety of user funds, because it eliminates the risk of price manipulation on the part of DMEX owners.