DeFi-based prediction market protocol PlotX announced on October 14 that it will integrate Chainlink decentralized oracles.
With the help of Chainlink, the project will utilize Bitcoin and Ethereum price feeds. By doing so, PlotX ensures data of higher accuracy for settlement and prediction market pricing.
This marks yet another of Chainlink’s successive integrations with leading blockchain platforms. In the last two weeks, three projects adopted the oracle solution provider in the form of integrating price feeds. These include the Radix, Ren, and dFinance integration.
In this case, the PlotX protocol will solely integrate Chainlink price feeds for the BTC/USD and ETH/USDT trading pairs. By doing so, the project guarantees both the accuracy and stability of the mentioned assets.
The announcement notes that Chainlink’s decentralized network is made out of 21 independent Sybil-resistant nodes. Moreover, they collect information from seven off-chain data aggregators. For prediction markets, these decentralized oracles will provide the optimal price accuracy and settlement stability.
The non-custodial prediction protocol provides a fair and decentralized solution for traders willing to participate and create prediction markets.
By utilizing PlotX, these traders earn rewards on all high-yield markets. The incentive for traders is to profit by predicting future asset prices on the basis of current market configurations. The team notes that the community known as PlotX the ‘Uniswap of prediction markets’ for its extensive features such as AMMs and risk spreads.
From now on, the Automatic Market Maker (AMM) will harvest information given by Chainlink price feeds to offer hourly, daily, and weekly market data. Considering that option, AMM will calculate prices on the PlotX blockchain. The project requires highly decentralized and stable oracle solutions like Chainlink to input precise prices just before settlement.
How will the Chainlink integration on PlotX work?
In the blog post, PlotX states that it chose Chainlink as their oracle solution for more than one reason. The team notes that the decentralized oracles provide high-quality price data that spans across multiple trading environments.
Additionally, PlotX confirms the high level of decentralization of these oracles, both in terms of data sourcing and data delivery options. Moreover, the leading DevOps and security teams in the blockchain industry ensure the security of these decentralized nodes.
More importantly, users have the ability to independently verify the state and accuracy of Chainlink’s oracle network through a transparent visualization on the project’s website. All of these factors result in a more than attractive solution for making sure that settlements are accurate.
The integration will start with two major functions. First, there is the Option Prices Computation for Prediction Options. PlotX plans to provide prediction options for every market that calculates option prices. The protocol will receive prices on trading pairs such as BTC/USD on an hourly basis.
The second step marks market settlement. On PlotX, all markets settle on-chain. With the integration, the settlements will be handled by utilizing inbound data from Chainlink oracles.
By doing so, the protocol assures automated, transparent, and provable settlements with zero manual intervention. PlotX will use the price data aggregated from more than seven sources, once the market settles the newest data will be used for settlements.