Why Is Low Latency Important for a DeFi Price Data Feed?
Low latency means the data is delivered with minimal delay. In DeFi, especially for trading and lending protocols, fast updates are crucial because cryptocurrency prices are highly volatile.
High latency can lead to 'front-running' attacks, inaccurate liquidations, or users trading on stale prices, which results in significant financial losses. Low latency ensures the smart contract's actions are based on the most current market reality.
Glossar
Data Feed
Source ⎊ A data feed in financial derivatives is the continuous stream of market information, such as price, volume, and order book depth, originating from exchanges and liquidity venues.
Low Latency
Execution ⎊ Low latency, within cryptocurrency, options trading, and financial derivatives, fundamentally concerns the speed at which orders are transmitted, processed, and executed, directly impacting profitability and risk exposure.