PlotX Integrates Chainlink’s BTC & ETH Price Reference Data For On-Chain Prediction Market Pricing and Settlement

PlotX
PlotX
Oct 14 · 5 min read
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PlotX is collaborating with Chainlink to use their market-leading decentralized oracle network live on the mainnet to access transparent and accurate on-chain price feeds every hour for crypto assets. This allows users to easily initiate new markets with the help of the automated market maker which then settle these markets completely on-chain based on Chainlink’s Price Reference Data.

The PlotX Protocol is currently leveraging Chainlink’s BTC-USD & ETH-USD Price Reference Data to power its live BTC & ETH prediction markets respectively. Chainlink’s BTC-USD & ETH-USD price oracles are secured by a decentralized network of 21 independent, Sybil-resistant node operators, that collectively source data from at least seven different off-chain data aggregators, ensuring transparent option price calculation and fair settlement on all prediction markets.

Why PlotX Selected Chainlink

PlotX is a non-custodial Prediction Protocol for crypto traders that allows users to earn rewards on high-yield prediction markets. It provides a fair, decentralized, and open-finance solution for prediction market creation, settlement, and reward distribution.

Participants can predict future cryptocurrency prices based on the current market prices, relying on oracle pricing and settlement mechanisms for seamless user experience. With features like automated market-making (AMM) and a risk spread mechanism, PlotX has been dubbed the Uniswap of prediction markets.

The PlotX AMM algo uses the information coming from oracle price feeds to create new hourly, daily, and weekly markets. With the market option prices being calculated on-chain, PlotX needs a highly decentralized and reliable oracle network like Chainlink to provide fresh price feeds every hour just before settlement, ensuring our users receive highly accurate data.

After a thorough analysis of different oracle solutions, Chainlink’s Price Reference Data was selected as the go-to oracle solution because it provides:

  • High-quality data that accounts for volume across all trading environments
  • Decentralization of both the data sourcing and data delivery functions
  • Secure node operators run by leading blockchain DevOps and security teams
  • Transparent visualizations of the oracle networks that users can independently verify
  • Shared financial costs of commonly used price feed through community funding
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Chainlink’s BTC-USD Price Reference Data feed

How the Integration Works

One of the critical components for operating PlotX in a secure and reliable manner, which is easily verified by all its members, is a reliable, secure, and accurate price feed. PlotX uses Chainlink’s live price feed for two major functions:

1. Option Prices Computation for Prediction Options — PlotX provides three prediction options for every prediction market where option prices are calculated. For example, in the hourly market on “What will be the price of BTC-USD in the next 1 hour?”, there are three prediction options:

Option (a) <$11,500

Option (b) Between $11,500-$11,600

Option (c)>$11,600

The price of each of the above options can be different. The calculation of the prices involves the current market price of BTC (or any other future crypto asset) as a factor.

2. Market Settlement — Markets on PlotX are settled on-chain. The markets are settled using inbound Chainlink oracles and smart contracts to ensure zero manual intervention and automated, transparent, and provable settlements.

At the market closing time, independent chainlink node operators post price feeds aggregated from 7+ sources to their chainlink contract. When a market settles, the latest feed is used to settle the markets.

For example — for the trading pair BTC-USD, one of the two markets available on PlotX right now, Chainlink’s decentralized oracle retrieves BTC-USD prices periodically based on the protocol’s requirements. In PlotX’s case, Chainlink provides on-chain price updates every hour just prior to settlement, which can serve our hourly, daily and weekly prediction markets. Prices are then uploaded onto the blockchain to enable PlotX settlement contracts to execute correctly.

PlotX’s ultimate aim is to create a curated and reliable platform for crypto traders, enabling them to perform vital trading functions like momentum sensing and positions hedging to increase their gains.

- Ish Goel, founder PlotX

- Daniel Kochis, Head of Chainlink Business Development

PlotX

PlotX is a non-custodial prediction protocol that enables users to earn rewards on high-yield prediction markets.

Dubbed as the Uniswap of Prediction Markets, PlotX uses an Automated Market Making algorithm to create, settle markets and distribute rewards on the Ethereum Blockchain without any counterparty risk. Markets are focused on crypto-pairs like BTC, ETH, etc, and are automatically created in intervals of 1h, 1d, and 1w.

Learn more by visiting the PlotX dApp or following on Twitter, Telegram, or Discord.

Chainlink

Chainlink is the most widely used and secure way to power universal smart contracts. With Chainlink, developers can connect any blockchain with high-quality data sources from other blockchains as well as real-world data. Managed by a global, decentralized community of hundreds of thousands people, Chainlink is introducing a fairer model for contracts. Its network currently secures billions of dollars in value for smart contracts across the decentralized finance (DeFi), insurance and gaming ecosystems, among others.

Chainlink is trusted to deliver definitive truth by hundreds of organizations to provide continuous, reliable data feeds. To learn more, visit chain.link and follow @chainlink on Twitter.

Website | Twitter | Discord | Reddit | YouTube | Telegram | Events | GitHub| Price Feeds | DeFi

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Non-Custodial Prediction Markets for Crypto Traders | Join the tribe https://discord.gg/gN5dvCh | Telegram community: t.me/plotx_official

PlotX

Written by

PlotX

Gamified DeFi Prediction Markets | Join the tribe https://discord.gg/gN5dvCh | Telegram community: t.me/plotx_official

PlotX

PlotX

Non-Custodial Prediction Markets for Crypto Traders | Join the tribe https://discord.gg/gN5dvCh | Telegram community: t.me/plotx_official

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