Oddz Finance – the world’s first multi-chain options trading platform that is built on Binance Smart Chain (BSC), Polkadot and Ethereum has now announced that it will be integrating with Chainlink’s Implied Volatility Data Feeds to support its multi-chain options trading platform.
With the rising popularity of cryptocurrencies, more and more people have started trading and investing in them on Centralized Exchanges. And as more people start adopting cryptocurrencies, the demand for more sophisticated trading products also rises. In traditional finance, the derivatives market, which most commonly includes forwards, futures, options and swaps, is worth a lot more in market size than the underlying asset market.
As the cryptocurrency market capitalization recently crossed $2 trillion, this market also needs to develop its own derivatives market where people can use them for speculation and hedging purpose. While there are many centralized derivatives trading platforms that provide sophisticated trading products, the market is very bullish on the potential of such products in the decentralized finance (DeFi) space.
In contrast to traditional finance, people can trade in Futures and Options in a completely trustless and permissionless way. There is no need for any KYC or fear of getting hacked. As long as these DeFi protocols are audited, there is no way you are going to lose your funds. The other benefits of trading options on decentralized platforms are that everything is very transparent and that is what Oddz Finance aims to do.
Benefits of the Chainlink Integration
Chainlink is the most widely used oracle network for powering universally connected smart contracts, enabling any blockchain to get access to real-world data. To ensure there is no manipulation in prices, Oddz Finance had to make sure that their data feeds come from a reliable source to accurately calculate options premium based on the expiration dates.
Chainlink has time and again proved that it provides high high-quality data using decentralized, time-tested, and hyper-reliable infrastructure that have strong built-in resistances to potential exchange inaccuracies or data manipulation attacks.
With the recent integration of Oddz Finance and Chainlink’s Implied Volatility Data Feeds, it is guaranteed that the options premium calculated will be dynamic in nature and will keep changing as the expiration date and other factors are adjusted by the trader.
It is, therefore, safe to say that this integration of Chainlink’s IV Data Feeds is just the beginning of Oddz becoming a leading options trading platform on DeFi.