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Jupiter Upgrades to Edge by Chaos Labs for Enhanced Solana Trading

Explore how Jupiter's integration with Edge by Chaos Labs enhances protocol stability and risk management in Solana trading.
Published on 2024-09-12

Introduction to Edge by Chaos Labs

Jupiter, a leading Solana trading platform, has upgraded its system by adopting Edge, a decentralized oracle protocol developed by Chaos Labs. This strategic move aims to enhance protocol stability and streamline trading operations. Edge has already processed $30 billion in trading volume on Jupiter, underscoring its position as a leader in low-latency oracle solutions.

Challenges in Asset Pricing

The complexity of liquidity fragmentation and price discovery across networks poses significant challenges for accurate asset pricing. In high-leverage markets, inaccurate pricing can lead to potential exploits. As markets shift towards higher leverage instruments, integrating a resilient price oracle solution becomes essential. Traditional "messenger oracles" fail to ensure data quality and transparency, prompting the need for a robust solution.

Edge Oracle Network

Chaos Labs introduced the Edge Oracle Network to address these challenges. This comprehensive solution combines accurate price data with actionable market intelligence, ensuring security and efficiency in DeFi applications. By monitoring market risks and providing real-time data adjustments, Edge offers precise and timely insights even during volatile market conditions.

Key Components of Edge

Edge comprises three main components:

  • Price: Delivers precise market data using advanced outlier detection algorithms.
  • Risk: Automates real-time parameter adjustments based on market conditions.
  • Proofs: Ensures secure on-chain delivery of custom data points via zero-knowledge proofs.

Impact on Jupiter

Jupiter's transition to Edge has significantly improved its trading operations. The platform has seen a 70% reduction in price staleness events and an 80% decrease in update fees. Edge’s efficient price reporting allows Jupiter to validate more prices per transaction, enhancing overall trading performance.

Beyond DeFi Applications

The design of Edge extends beyond decentralized finance. It is equipped to handle various offchain data, bringing real-world information onchain. This adaptability makes Edge suitable for diverse applications, including event outcomes and climate data.

Future Prospects

Following a successful $55 million Series A funding, Chaos Labs plans to expand the capabilities of Edge further. As the blockchain risk management leader, Chaos Labs continues to innovate, ensuring protocols maintain stability across market conditions. With its headquarters in New York City, Chaos Labs remains at the forefront of onchain financial solutions.

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