💰Pricing Data and the Role of Oracles

Introduction

GemaX adopts a distinctive strategy for pricing data, primarily shaped by solvers. These solvers engage in competition to deliver the most accurate and competitive quotes. Unlike platforms that mandate data streaming from specific sources like centralized exchanges (CEXs), GemaX allows solvers the freedom to stream quotes from a range of sources, including but not limited to CEXs and decentralized exchanges (DEXs).

This approach ensures a more comprehensive reflection of market conditions. This flexibility empowers solvers to tap into liquidity from diverse and cost-effective locations, providing traders with optimal order execution.

Pricing Data Source

• Solvers-Driven Quotes: GemaX relies on Solvers as the backbone of its pricing data, actively streaming quotes to the platform. These Solvers have the freedom to gather data from various sources, ensuring that the prices on GemaX are not only competitive but also a precise representation of market dynamics.

• Data Accuracy: As Solvers vie to present the most favorable quotes, the pricing data on GemaX is not only dependable but also delivered promptly. This competitive landscape reduces slippage, ensuring traders a smooth and efficient trading experience.

The Role of Oracles

• Dispute Resolution: Oracles within the GemaX ecosystem do not primarily focus on data verification. Instead, their key role comes into play during dispute resolution, serving as authoritative entities in rare instances of disagreements or uncertainties concerning pricing data. This ensures the maintenance of fair and transparent trading practices.

• Liquidation and Account Health: Oracles play a crucial role in the liquidation process when a party's margin drops below the required level. They assess the health of accounts and positions by utilizing oracle pricing, and when needed, they initiate liquidation through a neutral third party. This mechanism ensures that the deposited collateral is sufficient and prevents immediate account liquidation.

Note: Future versions be oracle-less to maximize decentralization and eliminate manipulation risk.

Benefits of the Approach

• Reliability: The competitive setting among Solvers guarantees that GemaX traders can rely on precise and trustworthy pricing information, instilling confidence in the platform's trading atmosphere.

• Security: The involvement of oracles as impartial third parties in both the liquidation process and dispute resolution enhances the security of trading on GemaX. This framework safeguards traders against potential manipulation, guaranteeing equitable and transparent trade settlements.

• Efficiency: GemaX's pricing data, shaped by the Solver-driven approach, guarantees responsive and efficient trading services with minimal latency and utmost accuracy in pricing.

Conclusion

GemaX's pioneering method of pricing data, propelled by the competitive nature of Solvers and reinforced by the involvement of oracles, establishes a secure, dependable, and effective trading atmosphere. This framework, fostering flexibility and competition among Solvers, with oracles handling liquidation and dispute resolution, positions GemaX as a robust and equitable platform that accurately mirrors market dynamics.