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Digitex Futures Integrates Chainlink’s On-chain Price Oracles for Added Transparency and Reliability

2020-05-25 15:00
Digitex Futures, the DGTX token powered, zero-fee cryptocurrency futures trading platform has announced a partnership with Chainlink to integrate the latter’s decentralized Price Reference Contracts on its exchange. Chainlink is known for offering reliable real-world input data for various smart contract solutions, and in this case, the company’s decentralized oracle will be helping Digitex Futures maintain the accuracy and integrity of price information on the trading platform.
Digitex has already created an accurate internal price feed based on information from trusted spot market sources as part of an index. However, it wants to further insulate the system from vulnerabilities and possible price manipulation, for which it has chosen Chainlink. The partnership serves as a milestone in the crypto industry as it the first time a centralized crypto futures exchange has relied on decentralized oracles to enhance its platform security.
Chainlink’s decentralized oracle network is a popular on-chain price reference data in the industry. According to the platform, it uses security reviewed, sybil resistant and fully independent nodes to create a shared global resource for financial applications. The oracles offered by Chainlink are used by some of the leading enterprises like Google, Oracle, SWIFT etc., and by leading smart contract development teams like Synthetix, Conflux, OpenLaw, etc.
With the use of Chainlink Price Reference Contracts, Digitex will maintain a manipulation-resistant price anchor that acts as a reference to detect a deviation in asset prices on the platform. Any significant deviation of Digitex’s internal price feed from that of the global markets as available on the Price Reference Contracts can be easily detected, and appropriate measures taken to safeguard the interests of traders on Digitex Futures.
While explaining the advantages of the collaboration between Digitex and Chainlink, CEO and Founder of Digitex, Adam Todd said,
"Chainlink provides Digitex with highly reliable and transparent price feeds that protect our users against the negative outcomes of abnormal market conditions or internal complications. Using Chainlink price data enables us to deliver stronger security and performance guarantees to our users, furthering our vision to revolutionize futures trading."
The Price Reference Contracts will be initially implemented in BTC/USD Perpetual Contracts, followed by support for additional price feeds and trading pairs as the platform launches new products. Digitex will be tightly integrating Chainlink’s oracles into the development roadmap of its soon to be launched Digitex Futures Exchange.
The Digitex mainnet is currently open; however, only around 200 users are trading while the company onboards users in small groups. Despite the fact it’s not yet fully open to the public, the exchange has already reached a notional value of $77 million volume in today’s 24-hour period. Onboarding will be ramped up to around 10,000 users in the next 4-5 weeks.
Digitex’s CEO has pointed out that onboarding in phases in this way means the exchange’s development team has an opportunity to fine-tune features and functionality before a full public launch. He states that "each new group of onboarded users has a better UX than the previous group."
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