How does Nuo's price feed work?Last Updated: May 26, 2019
For any currency pair, Nuo uses best price provided by decentralised exchanges (Pd) and hard-fences it using volume weighted average price aggregated over price feeds from centralised exchanges (Pc).
Currently Nuo uses Kyber and Uniswap as decentralised partner exchanges. We have some other awesome dexes joining us soon. Among centralised exchanges, Nuo tracks price and volume across all major cexes with >50 total cexes added already.
At any time, for any currency pair,
Pd = Best Price across partner decentralised exchanges
Pc = TimeDecaySum( Sum( VolumeOfCex * PriceByCex ) / TotalVolumeAcrossAllCexes )
VolumeOfCex, PriceByCex and TotalVolumeAcrossAllCexes use clustering techniques to remove anomalies in price/volume and ignore exchanges with poor pricing.
TimeDecaySum is built to reduce effect of a high volume exchange going offline for a while by reducing the weight of the price obtained from a cex based on the duration when the last trade was recorded from it.
lower_fence * Pc < Pd < upper_fence * Pc
Currently, fencing percentage is placed at 10% system-wide. Hence, lower_fence = 0.9 and upper_fence = 1.1. We can expect a tighter fence as dexes get more efficient and liquid in future
At any point in time, if the above condition doesnot hold true, the exchange market is paused and resumed again when the condition becomes true. This is done to prevent any unwanted liquidations from happening on the platform due to price manipulations or flash crashes across our partner dexes.