Zenlink is a decentralized exchange (DEX) built on the Polkadot ecosystem. It enables users to trade digital assets in a trustless and permissionless manner. Founded in 2021 by the Zenlink Foundation, the platform aims to provide liquidity and interoperability across different blockchain networks. The name "Zenlink" is derived from the concept of Zen philosophy, symbolizing harmony and connection. Key features include low fees, fast transactions, and a user-friendly interface.
Zenlink is a decentralized finance (DeFi) protocol that offers several benefits compared to its direct competitors. One of the key advantages of using Zenlink is its focus on interoperability. The protocol allows for seamless cross-chain asset transfers, enabling users to access a wide range of assets across different blockchains. This interoperability is particularly beneficial for users who want to diversify their holdings and take advantage of opportunities on multiple blockchains.
Another major benefit of Zenlink is its efficient liquidity provision. The protocol utilizes an automated market maker (AMM) model, which ensures continuous liquidity for traders. By utilizing liquidity pools, users can easily swap between different assets without relying on traditional order books. This not only facilitates faster transactions but also reduces the impact of slippage.
In addition, Zenlink differentiates itself by providing users with decentralized governance capabilities. This means that platform participants have a say in the decision-making process and can actively participate in shaping the future of the protocol. This democratic approach fosters community engagement and ensures that decisions align with the interests of the majority of stakeholders.
Compared to its direct competitors, Zenlink stands out with its robust security measures. The protocol implements various mechanisms to protect user funds and prevent potential vulnerabilities. This commitment to security is essential for building trust and attracting more users to the platform.
Overall, Zenlink offers a range of benefits including interoperability, efficient liquidity provision, decentralized governance, and robust security measures. These advantages position Zenlink as a strong contender in the DeFi space, providing users with a reliable and user-friendly platform for their trading and investment needs.
Zenlink is a decentralized finance (DeFi) platform that operates on the Ethereum blockchain. It aims to provide a seamless experience for users to access various DeFi products and services.
Zenlink operates as a decentralized exchange (DEX) aggregator. It utilizes an automated market maker (AMM) model for liquidity provision. AMMs enable users to trade digital assets directly from their wallets without the need for intermediaries. Zenlink leverages smart contracts to facilitate the trading process and ensure the security and transparency of transactions.
Blockchain and Functioning:
Zenlink is built on the Ethereum blockchain, which is one of the most widely used and recognized blockchains in the cryptocurrency ecosystem. It leverages the Ethereum Virtual Machine (EVM) and utilizes the ERC-20 token standard for digital asset representation.
The functioning of Zenlink involves aggregating liquidity from various DEXs and executing trades at the best possible price. It connects to several DEX platforms, analyzes their order books, and calculates optimal prices for users' trades. By accessing multiple liquidity sources, Zenlink aims to minimize slippage and provide users with the best possible trading experience.
Overall, Zenlink's technology and infrastructure enable users to access various DeFi products, exchange assets seamlessly, and benefit from the liquidity aggregation mechanism. By operating on the Ethereum blockchain, Zenlink taps into the robustness and security of one of the most established blockchain networks.
DIA utilizes a comprehensive approach when it comes to fetching trade data from various exchanges, including both centralized and decentralized platforms. The process varies depending on the type of exchange.
For centralized exchanges such as Coinbase, Kraken, and Binance, DIA employs scrapers to directly collect trades from the exchange databases. This is achieved using REST APIs or WebSocket APIs. The frequency of data collection ranges from 1 to 7 seconds, depending on the exchange. By retrieving data as close to the source as possible, DIA ensures high precision and up-to-date information.
In the case of decentralized exchanges like Uniswap, curve.finance, and PancakeSwap, DIA adopts a different approach. It collects data from the blockchain itself by subscribing to swap events in liquidity pools. This approach allows DIA to access trading data directly from the blockchain, resulting in enhanced accuracy and reliability.
When it comes to NFT marketplaces, DIA captures live trading data by retrieving information from integrated marketplace smart contracts. The retrieval period for NFT transactions ranges from 20 seconds to 1 minute. DIA's focus on real-time data ensures that it covers all NFT transactions happening within the supported marketplaces, providing a comprehensive view of the NFT market.
By implementing a comprehensive data management strategy, DIA ensures that it can provide highly accurate and customizable price feeds. This approach allows DIA to source granular trade data from a wide range of exchanges, both centralized and decentralized, including prominent platforms like Coinbase, Uniswap, and OpenSea.
DIA builds price oracles using Zenlink trade data by following a specific process. The process differs depending on the type of exchange we are referring to, whether it is decentralized finance (DeFi) or non-fungible token (NFT) exchanges.
For DeFi exchanges, DIA engages in data cleaning and outlier detection as the first step. This step ensures that the price estimation process is resilient against trades with prices that deviate significantly from the current market price. Outliers can result from market manipulation, errors, or flash crashes. DIA applies an Interquartile Range (IR) filter to remove outliers and exclude data points outside an acceptable range relative to the interquartile range. This helps in avoiding misaligned price data that can be caused by a single low-volume trade.
The second step involves the application of price determination methodologies. DIA uses trade-based price determination filters to compute a single USD price value for each asset. One example of such a methodology is the Volume Weighted Average Price (VWAP), which considers the different volumes of trades. Another example is the Moving Average with Interquartile Range Filter (MAIR), where trades are ordered by timestamp and grouped into blocks. The weighted average price is then derived from these blocks.
For NFT exchanges, the process of building price oracles is different. DIA determines the floor price of an NFT collection through a two-step approach. Firstly, the on-chain trade data is cleansed using filters to exclude outliers and manipulative techniques. Secondly, a pricing methodology is applied to determine the final price point. DIA offers various methodologies for NFT pricing, including the Floor Price and the Moving Average of Floor Price. These methodologies provide different ways of calculating a collection's value, taking into account factors like lowest sale price and moving averages.
It is worth noting that DIA acknowledges the potential for market manipulation techniques, such as wash trading and sweeping the floor, and implements measures to mitigate their impact on price feeds. DIA's goal is to provide dApps with realistic and reliable price data for NFT collections.
Overall, DIA's process of computing trade data from Zenlink to build price feed oracles involves data cleaning, outlier detection, and the application of specific price determination methodologies, tailored to the type of exchange and asset 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.