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How Do Decentralized Exchanges (DEXs) Handle the Final Settlement Price for Cash-Settled Derivatives?

They use decentralized oracles to feed a reliable, aggregated spot price onto the blockchain for settlement.
Greeks.Live21.11.25

How Do Decentralized Exchanges (DEXs) Handle the Final Settlement Price for Cash-Settled Derivatives?

DEXs typically rely on "oracles" to provide a reliable, tamper-proof, and decentralized feed of the underlying asset's price for final settlement. These oracles aggregate price data from various external sources (spot exchanges) and feed it onto the blockchain.

This method replaces the centralized clearinghouse's reference rate calculation with a decentralized, smart- contract-based mechanism.

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