SushiSwap-arbitrum is a decentralized exchange (DEX) built on the Arbitrum blockchain. It aims to provide users with efficient and low-cost trading of cryptocurrencies. The platform was launched in 2021 and is an extension of the popular DEX, SushiSwap. SushiSwap-arbitrum was founded by the same team behind SushiSwap and is known for its innovative features and community-driven development. It leverages the scalability benefits of the Arbitrum network to offer fast and cost-effective transactions for traders.
SushiSwap-arbitrum offers several benefits compared to its direct competitors.
First advantage is the scalability it provides. SushiSwap-arbitrum operates on the Arbitrum network, which is a layer 2 solution built on Ethereum. This allows for faster transaction processing and significantly reduces network congestion compared to operating directly on the Ethereum mainnet. As a result, users can enjoy lower transaction fees and quicker confirmation times.
Another benefit of SushiSwap-arbitrum is improved user experience. The platform offers a user-friendly interface and a wide range of features, making it easy for both beginners and experienced traders to navigate and participate in decentralized trading. The platform also provides liquidity incentives, rewarding users who provide liquidity with fees and incentives in the form of native tokens.
SushiSwap-arbitrum also boasts a strong community and ecosystem. With its growing user base and active development community, users can expect a vibrant and supportive environment. This not only promotes innovation and the development of new features but also ensures a seamless trading experience.
Compared to its direct competitors like Uniswap or Balancer, SushiSwap-arbitrum offers similar functionalities but with the added benefits of scalability, improved user experience, and a strong community. These factors make SushiSwap-arbitrum an attractive choice for users looking to trade cryptocurrencies efficiently and seamlessly while enjoying lower fees and faster transactions.
SushiSwap-arbitrum is a decentralized cryptocurrency exchange built on the Arbitrum blockchain. Arbitrum is a layer 2 scaling solution for Ethereum, which means that it operates on top of the Ethereum blockchain to improve scalability and reduce transaction fees.
SushiSwap-arbitrum leverages the benefits of Arbitrum's technology to enhance its functionality. The underlying technology behind Arbitrum is called optimistic rollups, which work by batching multiple transactions together and submitting them to the Ethereum blockchain as a single transaction. This reduces congestion on the Ethereum network and allows for faster and cheaper transactions without compromising security.
In terms of functioning, SushiSwap-arbitrum operates similarly to other decentralized exchanges. It allows users to trade cryptocurrencies directly from their wallets without the need for intermediaries. Users can provide liquidity to various trading pairs by depositing their tokens into smart contracts, which are executed on the Arbitrum blockchain.
The smart contracts on SushiSwap-arbitrum handle the matching of buy and sell orders and ensure the secure and transparent execution of trades. Users can also earn rewards by staking their SUSHI tokens on the platform, contributing to the overall liquidity of the exchange.
By running on Arbitrum, SushiSwap-arbitrum benefits from faster transaction processing times and lower fees compared to operating directly on the Ethereum blockchain. This improves the user experience and makes decentralized trading more accessible to a broader audience.
In summary, SushiSwap-arbitrum utilizes Arbitrum's layer 2 scaling solution to provide a decentralized exchange experience with improved scalability and reduced transaction fees.
DIA fetches trade data from SushiSwap-arbitrum by employing its comprehensive data management approach. In the case of DeFi exchanges like SushiSwap, DIA utilizes a combination of scraping and blockchain subscription methods to gather accurate trade data.
For centralized exchanges such as Coinbase, Kraken, and Binance, DIA utilizes dedicated scrapers that directly collect trades from the exchange databases using Rest APIs or WebSocket APIs. The frequency of data collection varies depending on the exchange, typically ranging from 1 to 7 seconds. This approach allows DIA to retrieve real-time trade data and ensure high precision.
In the case of decentralized exchanges like SushiSwap, DIA subscribes to swap events in liquidity pools on the underlying blockchain. By directly accessing the blockchain, DIA retrieves trading data in a trustless manner, enhancing data accuracy. This methodology enables DIA to capture trade data directly from the blockchain itself, ensuring reliable and precise information.
When it comes to NFT exchanges, DIA captures live trading data by monitoring the smart contracts of integrated marketplaces. The retrieval period ranges from 20 seconds to 1 minute, covering all NFT transactions happening in real-time. By focusing on the smart contracts, DIA ensures data precision from the broader NFT market, without relying on potentially unreliable bid and offer data.
By employing a combination of scraping and blockchain subscription methods, DIA is able to gather trade data from SushiSwap-arbitrum and other DeFi and NFT exchanges. This comprehensive data management strategy allows DIA to provide highly accurate and customizable price feeds for its users.
When building price feed oracles using SushiSwap-Arbitrum trade data, DIA follows a specific process that depends on the type of exchange being referred to, whether it is a DeFi or NFT exchange.
For DeFi exchanges, such as SushiSwap, DIA employs a two-step process. The first step involves data cleaning and outlier detection. This step ensures that the price estimation is resilient against trades with prices that diverge significantly from the current market price. To achieve this, DIA applies an Interquartile Range (IR) filter, which examines all trades within a predefined time range and eliminates outliers that fall outside an acceptable price range relative to the interquartile range.
The second step involves applying a price determination methodology. DIA utilizes trade-based price determination filters to calculate a single USD price value for each asset. One example of such a filter is the Volume Weighted Average Price (VWAP), which considers the different volumes of trades. It calculates a weighted average price by multiplying the normalized volume of each trade by its executed price and accumulating these products. 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 within the time range.
On the other hand, when building price oracles for NFT collections, DIA follows a different process. It aims to determine the floor price of an NFT collection, which is the lowest sale price recorded on the blockchain within a given time window. The data goes through cleansing filters to exclude market outliers and manipulation techniques. Then, a pricing methodology is applied to determine the final price point.
One methodology offered by DIA is the Floor Price, which provides the lowest sale price of an NFT collection. However, this methodology is susceptible to manipulation by malicious actors. To address this, DIA offers more advanced methodologies, such as the Moving Average of Floor Price, which calculates the moving average of a collection's floor price. Customizable parameters, such as the length of the average or the size of the floor window, allow for adjustments to specific use cases. Additionally, DIA applies an interquartile range outlier detection filter to filter out malicious behavior like wash trading.
In summary, DIA employs a data cleaning and outlier detection process, coupled with specific price determination methodologies, to build price feed oracles using SushiSwap-Arbitrum trade data for both DeFi and NFT exchanges.
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.