The growing and increasingly complex DeFi ecosystem demands more real-world data every day. Yet much of this external data is only available through non-crypto-friendly platforms with associated licensing requirements that make it difficult for data to be both widely available and in the right technology interface to feed on-chain environments.
Many traditional financial market data distributors haven’t pursued solutions that would allow them to bring their data on-chain. dxFeed, a leading market data and services provider and calculation agent for the capital markets industry, is an exception. By launching its own Chainlink node to make its premium data accessible across DeFi’s numerous new markets, “dxFeed was willing to jump in and make it happen,” said Managing Director, Dmitrii Parilov.
Named Best Data Analytics and Technology Provider by WatersTechnology in 2020, dxFeed provides access to an extensive list of real-time and historical market data across the United States, European Union, Turkey, APAC, Brazil and other global markets. Its data ranges from U.S. and EU equities, futures, options and indices data to forex, crypto and spot energy prices. With over six million end users, its services power more than 2.5 million financial instruments.
dxFeed will use its Chainlink node to blockchain-enable its existing suite of APIs in order to supply decentralized applications with a wide array of datasets that can trigger on-chain executions like derivative contract settlement, automated asset management and synthetic asset swaps. In the future, this will facilitate the creation of new data-driven DeFi products related to option markets and traditional equities.
Parilov said dxFeed is creating new and unique indices and real-time datasets for digital assets. “New instruments representing asset portfolios, volatility, volumes, sentiment and many more data sets will be potentially published through our node and can be adapted to create opportunistic trades, hedges or other on-chain DeFi and DEX trading products not yet seen,” he said. “We are excited to see what new DeFi primitives are created or reformulated using our forthcoming datasets to create prediction markets, yield vehicles and much more exciting utility.”
dxFeed is uniquely positioned to bring other real-world data – including equities, commodities, foreign exchange rates and other traditional financial instrument information from global exchanges – into the Chainlink price oracle environment. “We predict synthetically-backed tokens for various fiat currency price-linked stablecoins will be created to expand the on-chain universe beyond the majority USD-based stablecoins that exist today,” Parilov said.
As the first and largest supplier of financial market data to Chainlink nodes, dxFeed has received a large influx of new data clients and subscribers to its crypto price reference rates. “Quickly, once certain equities feeds were requested and dxFeed determined a path to providing them, our client base of crypto-related firms, including Chainlink node operators, multiplied explosively,” Parilov said.
Now with its own node, dxFeed is commissioning new datasets specifically to satisfy this increased demand while collaborating with industry stakeholders to build value on top of dxFeed-sourced content. Parilov predicts a bright future full of next-generation financial products that will add an invaluable level of transparency to how people exchange value around the world: “dxFeed has the skills and infrastructure to serve anything the crypto community can dream of.”
Read more about Chainlink’s latest integrations here.