What do we really know about Blockchain? Talking about the Bitcoin revolution without really knowing what is happening behind this innovation is common. Truth is that we cannot separate the financial phenomenon from the technology that supports it. Ethereum is the network that has given birth to the well-renowned system of Decentralized Finance. The creation of a secure, democratic and efficient environment for decentralized markets has only been possible thanks to the automation of Smart Contracts. In the face of so much transformation, we must be aware of the risks, limitations and weaknesses of Blockchain technologies, especially in the early stages of a proposal that has not yet reached its maturity. We will go through the fundamental vectors of innovation, from the foundations of Blockchain architecture to Smart Contracts in Ethereum, presenting case studies that allow us to conceive the value of this innovation in a pragmatic way. The Decentralized Finance ecosystem has fostered High Frequency Trading that exploits with the high volatility of the securities traded in these markets. For the agents involved in these activities, it is a challenge to keep up with price information from the different platforms of the framework. We will conclude the project with the development of a Price Oracle, an application that will provide reliable, immediate, updated and accurate information of prices disposed in different protocols of the environment for numerous assets. The utility offered by this API could potentially be integrated with strategies such as arbitrage in DeFi.
Show LessJiménez Mesa, Á. (2022). Blockchain y Contratos Inteligentes. Oráculo de Precios para Automated Market Makers [version 1] [preprint]. Blockchain.
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