Partnership with Souq Finance
Souq Integrates a DIA Price Oracle for GNS, GRAIL and USDC.e tokens to Power its On-Chain ETF Product on the Arbitrum Network.
Meet Souq, a platform that creates On-Chain ETFs from high-quality tokens hailing from revenue-generating protocols. Not only do these tokens meet a stringent set of inclusion criteria, but they can also be staked to generate yield, offering investors a sustainable yield and thematic token appreciation exposure. These ETF shares, represented by NFTs, are tradable in Souq’s proprietary decentralized exchange (an NFT automated market maker, or AMM), making them liquid 24/7/365.
Souq Integrates DIA Oracles on Arbitrum
We are excited to reveal that Souq has integrated a price oracle on the Arbitrum network, custom-built by DIA. This oracle is designed to deliver real-time price information of the GRAIL, USDC.e and GNS tokens. Souq employs DIA’s oracles to provide spot prices for these assets in their AMM’s bonding curve, allowing ETF shares to be priced based on their current net asset value and supply and demand in the market.
The price feeds are constructed using the token’s trade data aggregated directly from over 80 centralized and decentralized exchanges and applying transparent computational methodologies. The oracle pushes new price data on-chain, whenever the price deviates by 0.5% from the last reported value and every 24 hours.
Our team is thrilled to launch our On-Chain ETF. It builds on the launch of our decentralized exchange earlier this summer, an NFT AMM designed to trade assets with a net asset value, like bonds. By vertically integrating our On-Chain ETF packaging technology with our exchange, we’ve enabled access to liquid markets for this new NFT asset class on Day 1. These protocols will serve as the ecosystem bedrock for our upcoming tokenized bond and bond ETF products, core product pillars in our mission to make the highest quality investments accessible to everyone globally.Ken BerkowitzSouq Co-Founder and CPO
Transparent and Customizable Price Oracles
DIA’s price oracle for Souq is an example of transparency and customization, with a price feed that is updated every 120 seconds. This update frequency ensures a new price is generated by aggregating trades within that time window, utilizing a Volume Weighted Average Price with Interquartile Range (VWAPIR) pricing methodology.
The price feeds are then channeled on-chain through an oracle smart contract deployed on Arbitrum. A 0.5% deviation threshold for updates has been set, meaning the oracle will refresh the on-chain prices whenever they deviate by more than 0.5% from the last reported value or at a 24-hour interval, whichever comes first.
The DIA oracle covers real-time price information for the tokens GRAIL, USDC.e and GNS.
Price information is updated every 120 seconds. On the other hand, the oracle pushes new price data on-chain whenever there’s a 0.5% deviation from the last reported price, plus a daily update is pushed every 24 hours.
The Volume Weighted Average Price with Interquartile Range (VWAPIR) pricing methodology is utilized. Learn more about it here.
The price information is delivered on-chain via an oracle smart contract on the Arbitrum network.
Souq’s On-Chain ETFs consist of high-quality tokens from revenue-generating protocols, which can be staked to generate yield, providing investors with sustainable yield and thematic token appreciation exposure.