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:
No price impact: Trades do not influence the market price, ensuring fair execution.
Low to zero slippage: Minimal discrepancy between the expected and executed trade prices.
Instant settlement: Transactions are settled quickly and efficiently.
High capital efficiency in liquidity provision: Liquidity providers can optimize their capital allocation.
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.
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