Decentralized Finance (DeFi) turns traditional financial products into transparent, trusted protocols that work without intermediaries. Projects that are growing exponentially like Maker, AAVE, Compound and Synthetix all need protocols Oracles provides important fundamental data such as asset prices. These Oracles protocols are one of the essential foundations for the DeFi ecosystem to function and grow, and must meet the requirements of the large market and DeFi’s demands for transparency and independence.
Accurate and reliable financial market data is ubiquitous in the financial world. All financial products require market data. Access to financial data is controlled by a number of providers such as Thomson Reuters and Bloomberg. These providers are not a viable solution to support the emerging world of decentralized finance.
The rapid evolution of DeFi platforms and products with their unique composability creates interdependencies and requires a solid source of asset pricing data. Today, most DeFi products lack pricing data solutions and rely on non-transparent data sources. DeFi products can build their own feats or rely on external solutions. The data provided by the oracles and the methodology used are not transparent and pose great risks to investors. As discussed by Liu and Szalachowski (1), the methods of price processing with oracles are not explicitly stated. Even the sources that oracle pulls from are unclear or unknown to users of the platform.
This creates one of the biggest attack vectors for bad actors to exploit technological and methodological vulnerabilities. The absence of accurate data is fundamental to price manipulations and has led to a growing lack of confidence in the validity of fundamental market information about digital assets. Potentially compromised data sources and little transparency have resulted in bad actors manipulating oracles and exploiting DeFi products using no solution to mitigate this risk. Most recently, an oracle attack manipulated a trusted value.
Lack of transparency raises doubts about DeFi
Concerns over the underlying methodologies of digital asset data have led to a growing lack of confidence in underlying digital asset market information and questioned the sustainability of digital assets. DeFi app. Most DeFi applications and oracle vendors do not disclose the sources or methodologies that are the backbone of the smart contracts holding hundreds of millions of dollars in capital.
Unreliable data, altered by unique factors in the traditional market, has created great costs for investors. The outright fraud of market information (such as the LIBOR scandal) has resulted in regulators having to impose new risk-free rates.
We need to learn from these mistakes and be ready to exploit them. We believe that oracle vendors that feed data into DeFi applications as well as applications need to provide the right level of transparency and auditability to ensure efficiency and accuracy in pricing. . Currently, many cases have done this in a centralized way so that it can be manipulated in a simple way.
What is DIA?
DIA is an ecosystem for open financial data in the financial smart contract ecosystem. The goal of DIA is to bring together data analysts, data providers and user data. All in all, DIA provides a reliable and verifiable bridge between off-chain data from various sources and on-chain smart contracts that can be used. to build for a variety of financial applications (financial dapps).
As a non-profit association based in Switzerland, DIA has a mission to make financial data transparent, similar to what Wikipedia has done in the wider information space related to encyclopedias. DIA’s data sources and methodology are transparent and publicly accessible to everyone. The DIA uses crypto-economic incentives for stakeholders to validate data sources as they are added and throughout their use.
DIA needed for both decentralized finance and traditional markets
DeFi . Platform
DeFi platforms such as MakerDao, Synthetix, Ampleforth and their like are particularly vulnerable to vulnerabilities. Since these platforms are envisioned as autonomous financial protocols serving a wide variety of financial needs, they rely heavily on transparent and accurate pricing calculations. DeFi platforms will turn to transparent and auditable third-party solutions to ensure the sustainability of their core product. DIA serves these needs uniquely.
Traders and financial institutions
Anyone who wants to provide accurate information about digital assets or financial markets can source highly reliable data from the DIA platform. This group includes content providers such as financial news sites, crypto data platforms, market research institutes, etc.
Regulatory and financial authorities
Tax and financial regulators depend on reliable market data to make solid decisions and will be optimally served by the DIA platform.
How does DIA work?
Step 1: Request data
Stakeholders seeking a specific dataset that have not been published on the DIA platform can submit a request and a grant for the settlement of this request. The successful delivery of the respective data is associated with a bounty, which is paid by the data requester in DIA tokens once the information is validated.
Step 2: Send data
When requested data is provided (for a fee), the data provider creates a scan engine that connects to an API or data on-chain to provide the requested data.
Step 3: Accuracy
Data analysts verify the code that was submitted through the staking mechanism. If the submitted data is suspected to be false, anyone can challenge this submitted code through staking DIA tokens. The DIA community determines through a stake voting process who has provided the right solution and who will be rewarded with the amount in question. In addition, the association provides bounties to find bugs, errors, attempted manipulation or security flaws, and to improve and build an overall and more secure platform structure.
Step 4: Data saving
Validated data is stored in an open source, immutable database and published on the DIA platform.
Step 5: Use
Access data through oracles (on-chain) or through APIs (off-chain). Historical financial data can be accessed for free, DIA tokens will be used to pay for accessing prices directly or via specific APIs. More details on: github.com/diadata-org/diadata.
What is DIA token used for?
The DIA platform is an ecosystem that uses governance tokens. DIA is managed by a decentralized community of DIA Token holders and their delegates. The DIA token can be used to promote data collection, data validation, voting on related decisions of the association, and incentivize the building of the DIA platform.
Main uses of DIA token:
Vote on governance issues
Any matter related to the association and its platform that has a serious impact will be put to a vote in tokens. Any token holder can participate and cast their vote.
Cost of data collection
Data searchers can set bonuses for specific data needs. Data providers who build collections to source specific datasets are rewarded with a bonus upon completion of the work.
Enhance platform development
The DIA platform will be developed by the community and its token holders. Any desired feature can be suggested, voted on, funded and developed by the DIA developer community.
NSaccess live data streams and specific APIs
All data history can be accessed for free, while access to live data streams and specific APIs can be purchased with DIA tokens.
For specific information about the DIA, see:
Where to buy DIA TOKEN
Currently, DIA tokens are only sold through Uniswap.
Learn how to use uniswap now to buy and sell DEFI tokens: Uniswap
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