SushiSwap-polygon is a decentralized cryptocurrency exchange designed for the Polygon network. It aims to provide users with an efficient and cost-effective way to trade digital assets. Launched in 2020, it was founded by an anonymous individual or group known as "Chef Nomi." SushiSwap-polygon derives its name from the popular decentralized exchange SushiSwap and the Polygon network. It has gained popularity for its ability to offer high transaction speeds and low fees compared to the Ethereum network.
SushiSwap on the Polygon network offers several benefits compared to its direct competitors. Firstly, SushiSwap aims to provide users with a decentralized exchange experience while minimizing transaction costs. By operating on the Polygon network, SushiSwap leverages its Layer 2 scaling solutions, which result in faster and cheaper transactions compared to its competitors operating on other networks like Ethereum.
Another benefit of using SushiSwap on Polygon is the access to a wider range of assets. SushiSwap's integration with Polygon allows users to access a diverse set of tokens, including popular cryptocurrencies, NFTs, and Liquid Staked Tokens (LSTs). This access to a variety of assets provides users with more trading opportunities and the ability to diversify their portfolios.
Furthermore, SushiSwap-polygon offers improved liquidity and lower slippage due to the network's overall lower congestion levels compared to Ethereum. This means that users can enjoy smoother trading experiences with reduced price impact when executing trades on the platform.
It is important to note that this analysis focuses on the benefits of using SushiSwap-polygon compared to its direct competitors. Other decentralized exchanges operating on different networks, such as Uniswap on Ethereum or PancakeSwap on Binance Smart Chain, may have their own unique advantages and features. Ultimately, the choice of which decentralized exchange to use depends on individual preferences, trading strategies, and specific needs.
SushiSwap-polygon is a decentralized exchange (DEX) built on the Polygon blockchain. Polygon is a layer 2 scaling solution for Ethereum, which aims to improve scalability and reduce transaction fees.
The underlying technology behind SushiSwap-polygon is an automated market maker (AMM). This means that trades are facilitated through smart contracts, eliminating the need for intermediaries. Liquidity providers (LPs) can deposit their tokens into liquidity pools and earn rewards in return.
SushiSwap-polygon operates using liquidity pairs. These pairs consist of two tokens that are paired together in a pool. LPs provide equal amounts of each token to the pool, which establishes an initial price ratio. Users can then trade between these two tokens by swapping them at the current price determined by the pool's ratio.
The functioning of SushiSwap-polygon involves a key mechanism called "swapping." When a user wants to exchange one token for another, the AMM uses a mathematical formula to calculate the precise amount of tokens needed to complete the trade. This formula ensures that the trade maintains the initial price ratio of the liquidity pool.
SushiSwap-polygon also incorporates yield farming, allowing users to stake their tokens and earn additional rewards. LPs can provide liquidity to the pools and earn fees generated from trading activities.
Overall, SushiSwap-polygon harnesses the power of the Polygon blockchain to provide decentralized and cost-effective trading services through its automated market maker model, while also offering opportunities for users to earn rewards through liquidity provision and yield farming.
DIA fetches trade data from SushiSwap-polygon by utilizing its comprehensive data management strategy. When it comes to fetching trade data from DeFi and NFT exchanges, DIA follows different approaches depending on the type of exchange.
For centralized exchanges like Coinbase, Kraken, and Binance, DIA directly collects trades from exchange databases using Rest APIs or WebSocket APIs. The frequency of data collection varies between 1 to 7 seconds, depending on the exchange. This allows DIA to retrieve the most up-to-date and accurate trade data.
However, for decentralized exchanges like SushiSwap-polygon, DIA takes a different approach. It collects data from various blockchains by subscribing to swap events in liquidity pools. By directly retrieving trading data from the blockchain itself, DIA ensures a higher level of data accuracy and reliability compared to relying on external sources.
When it comes to NFT marketplaces, DIA captures live trading data by retrieving information from the integrated marketplace's smart contracts. The retrieval period ranges from 20 seconds to 1 minute, covering all NFT transactions happening in real-time. This approach ensures that DIA can provide precise data from the broader NFT market without relying on potentially unreliable bids and offer data.
By implementing these different strategies for fetching trade data, DIA maintains a thorough and accurate data collection process. This allows them to provide highly reliable and customizable price feeds for various cryptocurrencies, NFTs, and other digital assets.
When building price feed oracles with SushiSwap-polygon trade data, DIA follows a specific process depending on the type of exchange being referred to, whether it is DeFi or NFT.
For DeFi exchanges, DIA starts by cleaning and detecting outliers in the trade data. This is important to ensure that the price estimation process remains resilient against trades that deviate significantly from the current market price. After applying an Interquartile Range (IR) filter, trades that fall outside of an acceptable range relative to the interquartile range are excluded. Only trades that fall into the "middle" quartiles move forward for further processing.
To determine the final price from the remaining data points, DIA employs trade-based price determination methodologies. One example is the Volume Weighted Average Price (VWAP), which considers the different volumes of trades. Another methodology is the Moving Average with Interquartile Range Filter (MAIR), where trades are ordered by timestamp and weighted against their volume.
On the other hand, for building price oracles for NFT collections, the process is different. DIA first cleanses and filters the on-chain trade data to exclude market outliers and manipulation techniques. The goal is to determine the floor price of an NFT collection. The floor price represents the lowest sale price recorded on the blockchain during a given time window.
The simplest methodology for determining the floor price is the Floor Price, which provides the lowest sale price of an NFT collection. However, this methodology can be manipulated by malicious market actors. To combat this, DIA offers advanced methodologies such as the Moving Average of Floor Price. This methodology returns the moving average of a collection's floor price and includes customizable parameters to adjust to specific use cases.
It's important to note that DIA continuously explores and discusses custom filters and methodologies to provide more realistic and reliable NFT floor prices.
Overall, DIA's process for building price oracles involves data cleaning, outlier detection, and the application of various pricing methodologies depending on the type of exchange or NFT collection being considered.
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.