NASDEX has announced its integration with Chainlink price feeds on Polygon Mainnet enabling Asian-based stocks’ foray into the NASDEX trading platform.
Why Chainlink?
Announcing this integration, NASDEX officials explained that they have chosen Chainlink because they believe in its ability to mitigate slippage while minting, swapping, redeeming processes, and securing fair liquidations. They are poised to use the decentralized Chainlink-powered oracles for pricing synthetic assets on-chain. They also stated that as a result of these integrations, they would be able to access premium price data with regular updates. They will also ensure higher uptime and eliminate the possibility of any failure. They rely on Chainlink Price Feeds’ demonstrated track record of being very accurate even during moments of volatility, and as a result, they have a high degree of trust in Chainlink as an oracle solution.
NASDEX Architecture
NASDEX is a Dex for conventional assets that use non-blockchain assets. They adhere to a protocol of synthetic asset issuance and necessitate the use of an oracle to transfer pricing data from off-chain APIs to blockchain networks. Once the price data is on-chain, NASDEX users may employ the collateralized debt mechanism to mint synthetic tokenized assets depending on their existing values. Furthermore, once minted, the tokenized asset’s price is maintained in sync with Chainlink Price Feeds, allowing for redemption, swaps, and eventual liquidations.
NASDEX is fulfilling its mission of sorting out pain points in the legacy equity and cryptocurrency market. The main ones are restrictions in time frames, difficult accessibility centralized control, and lack of yield. As for cryptocurrency markets, the lack the diversity of asset classes is being addressed.NASDEX is trying to enable on-chain exposure to more asset types from the traditional asset world. Users will then access traditional asset markets without geographical restrictions while taking advantage of Defi features, staking for earning additional yield. For all this, it is important that a secure and reliable oracle mechanism provisions the price.
Chainlink Price Feeds advantages:
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Data reliability and quality: The data generated by Chainlink’s data aggregation model is more resistant to API downtime, data manipulation, and flash crash outliers.
Secure node operators: Independent, Sybil-resistant oracle nodes that are efficiently run by expert blockchain DevOps teams, data providers, and traditional enterprises ensure highly secure data.
The Decentralized Network: the Price Feeds are decentralized at the oracle network level, data source, oracle node, and oracle network levels assuring protection against downtime and any possible tampering by the data provider or the oracle network.
Monitoring and transparency: The Chainlink mechanism provides a set of on-chain monitoring tools that allows users to independently check real-time prices and verify the performance of node operators and oracle networks.
NASDEX
NASDEX serves as a bridge between the crypto world and the equity world, being a decentralized exchange enabling the trading of Asian stocks on-chain. It is a user-friendly platform enabling investors to buy and sell tokenized equity with 24/7 trading, fractionalized share buying, and yield farming.
Chainlink
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Chainlink is a decentralized oracle network, enables smart contracts to access off-chain data feeds, web APIs, and legacy bank payments securely. It helps developers quickly and securely launch data-enabled applications or Chainlink Price Reference Data Contract on the mainnet.
