DIA Introduces xLSD PRICE ORACLES
DIA introduces xLSD PRICE ORACLES for Liquid Staked Derivatives. The xLSD feeds unlock the true potential of Liquid Staked Derivatives by providing collateral-checked, fair-value price feeds.
DIA’s xLSD feeds enable DeFi protocols to support Liquid Staking Derivative tokens through a pricing approach that accounts for the collateral ratio.
DIA xLSD Price Oracle Features
- Fair-value pricing — Instead of leveraging exchange data to price LSDs, DIA leverages on-chain information to create “fair-value” price oracles.
- Better risk management — DIA’s fair-value LSD pricing evaluates the asset’s collateral ratio, to improve transparency and reduce the risk of market price manipulation.
- Fully customizable — xLSD feeds can be custom-built for any Liquid Staked Derivative for any protocol on any network.
HOW DOES IT WORK?
- The collateralization ratio is determined
This requires the deposited volume of the base token and the volume of minted derivatives. Both metrics read on-chain from the smart contract of the staking protocol.
- The market value of the base token calculation
DIA’s price feeds calculates using trade data from multiple high-volume exchanges. Prices determine by filtering market outliers and applying a transparent pricing mechanism.
- Fair-value feed is pushed on-chain
xLSD feeds can deploy on any of DIA’s 30+ integrates L1 and L2 networks. Users can customize oracle parameters such as update mechanism and frequency.
In addition, DIA xLSD feeds vastly improve the capability of protocols to integrate your LSDs. Deploy price oracles for your LSDs to enable a number of DeFi use cases
- Safeguard from Failure — xLSD’s feeds allow protocol operators and users to monitor collateral ratios and detect hacks, overissuance, and other issues.
- Lending & Borrowing — Enable users to deposit their liquid staked assets as collateral to settle loans, run swaps, and many more.
- Options & Futures — Build sophisticated dApps for the new generation of assets that liquid staking derivatives represent.
- Asset Management — Power the automatic management of on-chain pools with DIA’s oracles for liquid-staked derivatives.
ABOUT DIA
DIA (Decentralised Information Asset) is a multi-chain, end-to-end, open-source data and oracle platform for Web3. The DIA platform enables the sourcing, validation, and sharing of transparent and verified data feed for traditional and digital financial applications. DIA’s institutional-grade data feeds cover asset prices, metaverse data, lending rates, and more.
