DEX Synthetix Now Allows Trading of Brent Crude Oil Powered by Chainlink Oracle
Popular DeFi project DEX Synthetix now allows the crypto market to trade Brent Crude Oil as well.
sOIL (Synthetic Brent Crude Oil) is a non-expiring Crude Oil Index based on the futures prices of ICE Brent Crude Oil, whose price is tracked through price feeds supplied by the Chainlink oracle, which will source the data from ICE for an undisclosed price.
“sOIL is a great case study showcasing that DeFi developers are on the precipice of going far beyond cryptocurrency price feeds and starting to create financial products that provide exposure to food, energy resources, rare earth metals, real-world assets, equities, NFTs, weighted asset baskets, and much more,” said Chainlink in an official statement.
The tokens of both the projects are in the green today. Currently, SNX is trading at $4.32, up 561% YTD, while LINK is at $12.65, recording 605% gains in 2020.
With the addition of one of the major futures contracts for global oil markets, a real-world asset has officially entered the DeFi trading world. Recently, crypto derivatives exchange FTX also provided the crypto market exposure to stocks like Apple, Google, Tesla, and Amazon.
“There is significant demand for these assets particularly given the liquidity of the underlying markets and the difficulty of access for the average trader,” notes the SIP 62 “Futures reference price methodology,” which is about converting future market prices into a single reference price for Synths.
According to Chainlink, this is just the beginning as compared to DeFi’s $13 billion TVL, the global market for crude oil is over $1.7 trillion, not including the derivatives market.
“Traditional financial markets are orders of magnitude larger than cryptocurrency markets; DeFi has only begun to scratch the surface of tapping into it.”