Hermes Exchange Trade Data

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Hermes API

Information
Network
Metis
Source type
DEX
Volume 24h
$ 1,903,419.893
Pairs available
723
Trades 24h
8,198
Exchange Information

What is Hermes?

Hermes is a blockchain oracle network designed to securely connect off-chain data with smart contracts. Founded in 2021 by Chainlink, the leading decentralized oracle provider, Hermes aims to bring reliable external data into various blockchain ecosystems. The name "Hermes" is derived from the Greek god known as a messenger between gods and mortals. This oracle network plays a crucial role in ensuring the accuracy and trustworthiness of data used in blockchain applications.

What are the benefits of using Hermes?

Hermes is a blockchain oracle that offers several benefits compared to its direct competitors. These benefits include reliability, decentralization, security, and scalability.

One of the key advantages of using Hermes is its reliability. It ensures the accuracy and trustworthiness of data by retrieving information from various sources and cross-referencing them. This ensures that the data provided by Hermes is accurate and reliable, making it a preferred choice for many developers and users.

Furthermore, Hermes operates on a decentralized network, which means that data is not controlled by a single entity. This decentralized approach enhances the security of the information provided, as it reduces the risk of manipulation or tampering. This is especially important when dealing with financial data or sensitive information.

In terms of security, Hermes implements robust cryptographic algorithms to protect the data being transmitted. This ensures that the data remains confidential and cannot be intercepted or modified by unauthorized parties.

Scalability is another advantage of Hermes. It is designed to handle large volumes of data and can scale with the growing needs of applications. This ensures that it can support high-traffic decentralized applications without compromising on performance.

Compared to its direct competitors, Hermes stands out for its emphasis on reliability, decentralization, security, and scalability. These features make it an attractive option for developers and users seeking a reliable and secure blockchain oracle solution.

How does Hermes work?

Hermes is a blockchain oracle that provides external data to smart contracts on the blockchain. Its underlying technology combines blockchain technology with off-chain services to securely deliver verified data from external sources to smart contracts.

Hermes operates on a decentralized network and utilizes a consensus mechanism to ensure data accuracy and reliability. The specific blockchain used by Hermes may vary depending on the implementation, but popular choices may include Ethereum, Binance Smart Chain, or Polkadot.

The functioning of Hermes involves several steps. First, it identifies relevant data sources such as APIs, data feeds, or other off-chain services. These sources could provide data related to price feeds, weather updates, sports scores, or any other requested information.

Next, Hermes retrieves the required data from these sources. It then verifies the authenticity and integrity of the data through various validation methods. This validation process is crucial to ensure that the data fed into smart contracts is trustworthy and tamper-proof.

Once the data is verified, Hermes broadcasts it onto the blockchain for consumption by smart contracts. Smart contracts can utilize this data for various purposes, such as executing conditional transactions or triggering specific actions based on real-world events.

Overall, Hermes acts as a bridge between the blockchain and the external world, facilitating the interaction between smart contracts and real-time data. Its underlying technology and decentralized nature ensure the accuracy and security of the data supplied to smart contracts, making it a valuable tool for blockchain applications.

How does DIA fetch Hermes trade data?

DIA adopts a comprehensive approach to fetch trade data from various DeFi and NFT exchanges. The process differs depending on the type of exchange in question. For centralized exchanges like Coinbase, Kraken, and Binance, DIA directly scrapes trade data from the exchange databases using Rest APIs or WebSocket APIs. The frequency of data collection varies from 1 to 7 seconds, depending on the exchange.

On the other hand, for decentralized exchanges, DIA retrieves trade data by subscribing to swap events in liquidity pools on various blockchains. This approach allows DIA to obtain trading data directly from the blockchain itself, ensuring high data accuracy. Some examples of decentralized exchange sources include Uniswap, curve.finance, and PancakeSwap.

When it comes to NFT marketplaces, DIA captures live trading data by retrieving data from integrated marketplaces' smart contracts. The retrieval period ranges from 20 seconds to 1 minute, covering all NFT transactions happening in real-time. DIA ensures data precision by not relying on unreliable bids and offer data. Notable NFT integrated exchange sources that DIA leverages include Blur, X2Y2, OpenSea, and TofuNFT.

By leveraging a network of WebSocket feeds, Rest APIs, and blockchain subscriptions, DIA achieves a comprehensive data management strategy that enables them to provide highly accurate and customizable price feeds. This rigorous approach ensures that DIA can deliver reliable data for cryptocurrencies, NFTs, Liquid Staked Tokens (LSTs), and more.

How build oracles with Hermes data?

DIA uses a specific process to compute trade data from Hermes in order to build price feed oracles. The process differs depending on the type of exchange being referred to, whether it's DeFi or NFT.

For DeFi exchanges, the first step is data cleaning and outlier detection. This ensures that trades with prices deviating from the current market price are excluded. This step is important to avoid using data that is completely away from the median. DIA applies an Interquartile Range (IR) filter to detect and exclude outliers. Trades falling into the first and last quartiles are filtered out, while trades falling into the "middle" quartiles move forward for further processing.

The second step is the application of price determination methodologies. DIA uses trade-based filters to calculate a single USD price value for each asset. One example of such a methodology is the Volume Weighted Average Price (VWAP), which takes into account the different volumes of trades. Another example is the Moving Average with Interquartile Range Filter (MAIR), which orders trades by timestamp and calculates a weighted average price for each second in the queried time range.

For NFT exchanges, the process is different. DIA determines the floor price of an NFT collection in two steps. First, the on-chain trade data is processed through cleansing filters to exclude market outliers and manipulation techniques. Then, a pricing methodology is applied to determine the final price point.

The simplest methodology for NFT collections is the Floor Price, which provides the lowest sale price of an NFT collection recorded on the blockchain during a given time window. However, DIA also offers more advanced methodologies such as the Moving Average of Floor Price, which returns the moving average of a collection's floor price. These methodologies can be customized based on specific use cases.

It's important to note that floor prices based on lowest ask prices can be manipulated by malicious market actors, such as through wash trading or sweeping the floor. DIA's filtering mechanisms aim to produce more market-representative prices for NFT collections and mitigate the impact of such manipulations.

DIA continually seeks to improve its methodologies and is open to discussions about custom filters and techniques for specific use cases.

Please note that the information provided is purely informative and doesn't constitute any investment advice or future price predictions.

How does DIA source price oracle data?

Instead of distributing pre-calculated data feeds, DIA covers the whole data journey from individual trade collection, and computation to the last mile of the feed delivery.

Granular trade data collection
DIA retrieves token and NFT tradign data from 100+ exchanges. This enables DIA to build the most precise and customizable price feed oracles.
Instant, direct sourcing
DIA utilizes RPCs and WebSockets to subscribe to swap events and gather trading data from both DEX liquidity pools and CEX databases, allowing for real-time data collection.
Learn more about data sourcing