DOPEX UPGRADES TO CHAINLINK PRICE FEEDS TO HELP SECURE OPTIONS TRADING
We’re excited to announce that DOPEX, a disruptive, decentralized options exchange, has officially upgraded our in-house oracle solution to Chainlink Price Feeds on Arbitrum Mainnet. By upgrading to the industry-leading decentralized oracle network, Dopex now has direct access to high-quality, tamper-proof, and battle-tested price data feeds needed in times of volatility. This integration will provide options writers and buyers stronger assurances that they’re always transacting with fair-market prices.
Our initial integration involves the use of the following Chainlink Price Feeds:DPX / ETH. We chose Chainlink as our go-to oracle solution because its infrastructure is seamless to integrate and time-tested in production. Chainlink already helps secure leading DeFi protocols responsible for tens of billions of dollars in smart contract value, maintaining robust security and high availability even amidst unexpected events, such as exchange downtime, flash crashes, and data manipulation attacks via flash loans.
Dopex is a decentralized options protocol that aims to maximize liquidity, minimize losses for option writers, and maximize gains for option buyers—all in a passive, yet simple manner.
Currently, Dopex’s main product uses a solution called “SSOV” (Single Staking Option Vault), where users can effortlessly sell both call and/or put Options through a primary marketplace located on the Dopex dApp. The Dopex team has solid ambitions and aims to become the #1 decentralized options exchange by acquiring deep option liquidity through precise and detailed incentives.
Here’s an illustration of our SSOV page where users can deposit their assets to provide option liquidity.
In our next forthcoming iteration, Dopex will use option pools to allow users to earn a yield passively. Offering value to both option sellers and buyers by ensuring fair and optimized option prices across all strike prices and expiries. This is thanks to our own innovative and state-of-the-art option pricing model that replicates volatility smiles.
In order to help secure our decentralized options contracts and our LP pool, we needed access to fresh asset prices that are supplied directly on-chain in a highly reliable manner. Fair market asset prices should reflect a volume-weighted average from all trading environments. Thus, we needed to make use of an oracle network to fetch aggregated price data off-chain and deliver it on-chain to be consumed by our application.
After reviewing various oracle solutions, we integrated Chainlink Price Feeds because they provide a multitude of critical features such as:
- High-Quality Data — Chainlink Price Feeds source data from numerous premium data aggregators, leading to price data that are aggregated from hundreds of exchanges, weighted by volume, and cleaned of outliers and wash trading. Chainlink’s data aggregation model generates more precise global market prices that are inherently resistant to inaccuracies or manipulation of any single or small set of exchanges.
- Secure Node Operators — Chainlink Price Feeds are secured by independent, security-reviewed, and Sybil-resistant oracle nodes run by leading blockchain DevOps teams, data providers, and traditional enterprises. Chainlink nodes have a strong track record of reliability, even during high gas prices and infrastructure outages.
- Decentralized Network — Chainlink Price Feeds are decentralized at the data source, oracle node, and oracle network levels, generating strong protections against downtime and tampering by either the data provider or oracle network.
- Reputation System — Chainlink provides a robust reputation framework and set of on-chain monitoring tools that allow users to independently verify the historical and real-time performance of node operators and oracle networks.
We look forward to further integrating Chainlink services into our second native token rDPX V2 once our redesigned tokenomics have been implemented. This of course also includes the launch of a native stablecoin, which will be a major component of the operating approach that Dopex will use for its line of products.
“Dopex chose Chainlink for the assurance, security, and battle-tested oracle services the network provides. In times of volatility, option writers and buyers need to feel confident that they are transacting crypto assets at their fair market value. Chainlink Price Feeds are proven to be resistant against volatility and provide best-in-class pricing data for Web3’s largest DeFi projects.”–TzTokChad, Founder and CEO of Dopex.
Chainlink is the industry standard for building, accessing, and selling oracle services needed to power hybrid smart contracts on any blockchain. Chainlink oracle networks provide smart contracts with a way to reliably connect to any external API and leverage secure off-chain computations for enabling feature-rich applications. Chainlink currently secures tens of billions of dollars across DeFi, insurance, gaming, and other major industries, and offers global enterprises and leading data providers a universal gateway to all blockchain
Dopex is a decentralized options protocol that aims to maximize liquidity, minimize losses for option writers and maximize gains for option buyers — all in a passive manner. Dopex uses option pools to allow anyone to earn a yield passively. Offering value to both option sellers and buyers by ensuring fair and optimized option prices across all strike prices and expiries. This is thanks to our own innovative and state-of-the-art option pricing model that replicates volatility smiles.
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