In What Scenario Would a Derivatives Exchange Prefer a Pull Oracle for Settlement?
A derivatives exchange would prefer a pull Oracle for settlement in scenarios where the settlement event is predictable and not highly time-critical, such as the final expiration of a European-style option. Since the exact settlement time is known, the exchange can initiate a single, precise pull request for the final settlement price just before expiration, saving the continuous gas costs associated with a push Oracle.
Glossar
Final Settlement Price
Valuation ⎊ The Final Settlement Price in cryptocurrency derivatives represents the agreed-upon value of the underlying asset at contract expiration, crucial for determining payouts in options and futures.
Pull Oracle
Oracle ⎊ A Pull Oracle is a data delivery architecture where the consuming smart contract actively initiates a transaction to request and retrieve the latest off-chain data, typically a market price, from the oracle network.
Derivatives Exchange
Platform ⎊ Derivatives Exchange is a regulated or permissioned marketplace facilitating the trading of standardized contracts whose value is derived from an underlying asset, such as Bitcoin or Ethereum futures and options.