VDEX
  • overview
    • Introduction
    • What is VDEX?
    • Core Features
      • Omnichain Trading
      • Full Self-Custody
      • Sustainable BTC Yield
      • ZeroGas Transactions
      • Sub-Millisecond Finality
      • No KYC, No VPN Restrictions
  • Trade
    • Platform
      • Getting Started
      • Platform Navigation
      • Deposit and Withdraw
      • Supported Collateral
      • Pairs
      • Finality Time
      • Perps
      • Orders
      • CLOB
      • Margin
      • Leverage
      • Liquidations
      • Fee Schedule
      • Gas Fees
      • Funding Rate
      • Insurance Fund
    • Access
      • Chain Abstraction
      • No VPN, No KYC
    • Beta
    • Market Making
    • Security
      • VDEX Fund Protection
      • Dispute Resolution Mechanism
      • Oracle and Collusion Safeguards
  • Yield
    • Virtual Market Maker
    • Volatile Asset Collateral
    • Fund Strategy
  • Ecosytem
    • Overdrive
      • Overdrive: The Ultimate Trading Advantage
        • Activating Overdrive
        • Key Participants
      • Market Makers-Overdrive
      • Traders-Overdrive
    • Bug Bounty Program
    • Bug Reporting Guidelines
    • Contact & Support Channels
    • FAQ
    • Whitepaper
    • Definition of Terms
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On this page
  • 1. Decentralized Oracles
  • 2. Time-Weighted Average Prices (TWAP)
  • 3. Anti-Collusion Mechanisms
  • 4. Penalties for Malicious Behavior
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  1. Trade
  2. Security

Oracle and Collusion Safeguards

To maintain fairness and prevent exploitation, VDEX implements advanced protections against collusion and Oracle manipulation.

1. Decentralized Oracles

VDEX uses decentralized Oracle networks like Chainlink to fetch market data.

  • Multiple Data Sources: Price feeds aggregate data from multiple exchanges, ensuring accuracy.

  • Tamper-Proof Infrastructure: Oracles use cryptographic signatures to prevent unauthorized manipulation.

2. Time-Weighted Average Prices (TWAP)

To mitigate the impact of short-term price manipulation, VDEX relies on TWAP calculations.

  • Smoothed Pricing: TWAP averages prices over a specified period, reducing the effect of sudden spikes or dips.

  • Manipulation Resistance: Prevents traders from exploiting temporary price fluctuations for profit.

3. Anti-Collusion Mechanisms

VDEX employs safeguards to detect and prevent collusion among traders.

  • Behavioral Analysis: AI-driven tools identify suspicious trading patterns indicative of collusion.

  • Sanctions for Malpractice: Accounts engaging in collusion face penalties, including bans and forfeitures.

4. Penalties for Malicious Behavior

VDEX enforces strict penalties for Oracle manipulation attempts or exploitative practices.

  • Bonded Validators: Oracles stake collateral to ensure honest behavior, forfeiting it if manipulation is detected.

  • Blacklisting and Reporting: Malicious actors are blacklisted and reported to the broader crypto community.

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Last updated 8 days ago