Multi-Dimensional Price Oracles | Jakub Wojciechowski - RedStone Oracles

Wed, Oct 2, 2024, 12:00 AM

Many of the Defi protocols rely on accurate pricing of user collateral. The most common approach is to use spot prices for all assets included in the collateral to estimate their market value. However, the spot price is only an approximation of the actual market price of all assets, as the liquidation process often involves additional slippage and fees. Redstone proposes a novel approach with multi-dimensional pricing that provides a two-dimensional curve indicating a price depending on the quantity of assets to be liquidated. The curve is generated in real time based on the liquidity available in the current market and any additional costs due to swap fees. This allows protocols to better price collateral, reduce risk margin and improve capital utilisation. During the presentation, I will describe the methodology used to create the multidimensional price. I will also use code examples to show how the data is formatted and how it can be used efficiently in smart contracts. APPLICATIONS FOR ETHDenver 2024: #YearOfTheSpork ARE OPEN APPLY NOW https://ethdenver.com/apply