Partnership with Clout Finance
We are delighted to announce that Clout Finance has integrated DIA’s transparent oracle to power its Decentralised Perpetual Exchange protocol on the Telos Network.
Introducing Clout Finance
Clout Finance is a decentralized spot and perpetual exchange that supports low swap fees and zero-price impact trades. Clout Finance is currently deployed on the Telos network and is expected to support other networks in the near future. Clout Finance is a fork of the popular perpetual protocol on Arbiturm, GMX.
Powering Perpetual Exchange with Price Oracles
Perpetual exchanges, or perpetual swap contracts, are a type of futures contract where there is no expiry or settlement like traditional futures. However, these exchanges rely heavily on price oracles to operate effectively for several reasons:
- Fair Price Marking: Perpetual contracts use a mechanism called “Mark Price” to avoid unnecessary liquidations in volatile markets. This mark price is usually an index derived from multiple spot exchanges, acting as an oracle, to represent a fair value of the underlying asset. This helps prevent manipulative trading and unwarranted liquidations.
- Funding Rate Calculation: In perpetual contracts, there is a mechanism called the “Funding Rate” used to balance the market. This rate is paid between longs and shorts based on the difference between the contract price and the mark price. Price oracles are necessary to accurately provide this mark price.
- Accurate Liquidation: When a trader’s margin balance falls below a certain level, the perpetual contract needs to be liquidated. This liquidation price is determined by considering the mark price from the oracle. Accurate and timely price feeds are necessary to ensure fair liquidation.
Clout Finance Integrates DIA Price Oracles
We are delighted to announce that Clout Finance has officially integrated DIA’s transparent and customizable oracle solution to power its perpetual decentralised exchange, running on the Telos EVM network.
DIA has deployed a dedicated price oracle for Clout Finance, to power its perpetual exchange protocol. The oracle contains price feeds for BTC, USDC, TLOS, and ETH. These price feeds are constructed by granularly sourcing trade data from DIA’s integrated 80+ CEXs and DEXs. This, in turn, provides accurate and transparent data that best represents the broader DeFi market.
The oracle has been set up with custom parameters to best suit Clout’s unique requirements. These include a MAIR pricing methodology as a 120-sec time-based update mechanism. The specifications were transferred via a Custom Delivery Request — CDR on the DIA Forum and can be found here: CDR #044: Clout Finance | Price Feeds on Telos | DIA Forum.