/biz/ - Business & Finance

be it pyth icp wirnet band tellor api3 whatever the fuck.
Until now, price feeds were just that "price values over time" But the problem is that you cannot do much with price only. Alongside price, decentralized exchanges (DEXes) need liquidity indicators to help them gauge the impact of trades on an asset's price. That's why Chainlink just ass raped raw all other oracles, and it's gonna be hard for them to make a similar offer.
Alongside price data, chainlink now adds liquidity indicators such as:

>market deppth: The measure of the total amount of liquidity available for an asset at various price levels.

if an asset has high depth, it means that there are a lot of buy and sell orders at different price levels, indicating that it is more liquid.

>bid/ask Smspread: The difference between the highest bid price and the lowest ask price of an asset

If an asset has a narrow spread, it means that there is not much difference between the highest buy order and the lowest sell order, indicating that it is more liquid.

>trading volume: The total amount of trades that have occurred for a specific asset over a certain period of time.

If an asset has high volume, it means that it is being traded frequently, indicating that it is more liquid.

By incorporating these liquidity indicators into their price feeds, Chainlink is providing more valuable information to DEFI, which can help them make more informed decisions about loans, liquidations, trades, ridk, slippage calculation...
Chainlink has unironically btfo all oracles who thought its just about price LMAO they are all shitting bricks, that data cant be fetched that easily... link has just upped the quality of their oracle data.

>https://blog.chain.link/liquidity-indicators/