Price Oracle

Pinnako's trade product uses of an on-demand Decentralized Oracle Network (DON) to obtain spot pricing data from leading exchanges. By taking the median value and eliminating outliers, DON aggregates the data into a single, reliable price point, which is then submitted to the blockchain for execution.

The Oracle-based Settlement Algorithm is a collection of transaction settlement algorithms that rely on data from on-chain oracles, rather than liquidity reserves in Constant Function Market Makers (CFMM) or order book liquidity depth.

Advantages of the Oracle-based Settlement Algorithm include:

1. No price impact: Trades do not influence the market price, ensuring fair execution.

2. Low to zero slippage: Minimal discrepancy between the expected and executed trade prices.

3. Instant settlement: Transactions are settled quickly and efficiently.

4. High capital efficiency in liquidity provision: Liquidity providers can optimize their capital allocation.

5. Enabling markets without physical inventory: Access to markets like Forex, indices, and stocks without the need for physical assets.

By incorporating these advantages, Pinnako offers a sophisticated trading experience with increased efficiency and reduced risks.