Premia, the next-gen options AMM, announced the launch of the all-new Volatility Oracle by the employment of Chainlink nodes. The Premia platform is known for introducing capital efficiency and peer-to-pool trading opportunities to the DeFi market. The Volatility Oracle will bring the Premia data of options volatility on-chain, making it available for the entire DeFi market. Through the launch, Premia will be able to broadcast the wide range of volatility data to the development teams of decentralized finance, individual DeFi developers, and DAO.The Volatility Surface Oracle shall provide risk markets with new opportunities of granular token volatility data, options, and more.
The developers at Premia will be able to access the Volatility Surface Oracle on-chain to obtain premium quality options volatility data, including smiles of particular options, skews, and term structures. The Volatility Surface Oracle shall enable the developers of smart contracts to create novel DeFi applications using high-quality Premia data. For example, the Premia data can be used to input the customized formula of dApps for pricing options and build novel hedging instruments to help users with market risk management.
The V2 of Premia is the foremost on-chain application that uses granular volatility data provided by the Oracle of Chainlink. Currently, every option of Premia V2 is set at the price determined by the Volatility Surface Oracle in integration with Chainlink that ensures fair prices. Chainlink is renowned for being the most secure blockchain-based middleware. Chainlink enables the API of Premia to become easily accessible and smoothly compatible on different blockchain networks. Additionally, the nodes of Chainlink enable the cryptographic signature of all the data that Premia supplies to the blockchain to guarantee the origin of the Premia data. The cryptographic signature makes the data more reliable for use in automating key functions on the platform.