Pricing Engine
As previously stated, Tangent leverages the lag between two of the Oracles that are embedded in a Curve liquidity pool as a way to artificially generate arbitrage opportunities, to incentivize order executions while still ensuring a fair pricing for both sides.
When an order (PMO
or LO
) is executed by a third party, both Oracles are used to fetch prices and process the trade. The price of token_Out
(token sold) is fetched using one Oracle, while the price of token_In
(token used by the taker) is fetched using the other one. In the case where a stablecoin is involved within the transaction, please refer to the Stablecoins section. All prices are computed on a dollar basis.
This section will be updated with a full breakdown of the Pricing Engine design, as Tangent's launch will get closer.
We decided not to share all details yet to protect the technology behind this product.
Last updated