Chainlink Launches State Pricing to Boost DEX Accuracy for Long-Tail Assets

Chainlink has introduced State Pricing, a new oracle-based pricing method designed to enhance valuation accuracy for long-tail crypto assets on decentralized exchanges (DEXs). This innovation leverages on-chain liquidity data to provide precise pricing, addressing the challenges faced by assets with low trading volumes on centralized exchanges (CEXs) but strong decentralized liquidity [1]. By doing so, it supports more reliable collateral valuation and trading strategies within the decentralized finance (DeFi) ecosystem [1].

The system operates through two primary data delivery models: push-based data feeds and pull-based data streams. Push-based data feeds continuously deliver price updates, making them ideal for protocols requiring real-time information. In contrast, pull-based data streams allow users to request specific data points on demand, offering flexibility for diverse decentralized applications and trading strategies [1].

Currently, Chainlink State Pricing supports several tokenized assets including wstETH, GHO, LBTC, cbBTC, ezETH, and tBTC. These assets were selected for their substantial on-chain liquidity despite minimal centralized exchange trading volumes [1]. The initiative plans to expand its asset coverage continuously based on evolving user demand and market trends [1].

Experts highlight that Chainlink State Pricing enhances market transparency and reduces risks such as price manipulation or illiquidity [1]. The dual approach of data delivery models significantly reduces price slippage and improves market efficiency on DEX platforms [1]. Developers can now access pricing data on demand through Chainlink Data Streams, providing tailored support for various decentralized applications and strategies [1].

Chainlink State Pricing marks a significant advancement in decentralized asset valuation by improving price accuracy and liquidity assessment for long-tail crypto assets. This development strengthens DeFi infrastructure and promotes transparency in the crypto market [1]. With its flexible data access models and expanding asset coverage, Chainlink is positioning itself as a leader in oracle technology, empowering users and developers to refine their decentralized finance strategies [1].

Source: [1] Chainlink Launches State Pricing to Enhance Accuracy for Long-Tail Crypto Assets on DEXs (https://en.coinotag.com/breakingnews/chainlink-launches-state-pricing-to-enhance-accuracy-for-long-tail-crypto-assets-on-dexs/)