Why Is Using Multiple Exchanges Important for a Reference Rate?

Using multiple exchanges is crucial because it diversifies the data sources, making the final reference rate more robust and less susceptible to manipulation on any single platform. It ensures the rate reflects the broader market consensus and trading activity, preventing a single, potentially illiquid, exchange from dictating the settlement price for the entire derivatives market.

What Is the Advantage of Using a Median Price over an Average Price in Data Aggregation?
Why Is a Multi-Exchange Index Price Preferred over a Single Spot Price for Calculating Margin Requirements?
Why Is the Index Price Considered More Reliable than a Single Exchange’s Spot Price?
How Does the Selection of Data Sources Impact the Final Aggregated Price?
How Does Using Multiple, Independent Data Sources Enhance Oracle Data Integrity?
How Does an Oracle Price Feed Help Prevent Manipulation of the Mark Price?
How Does a Smart Contract Determine the ‘Correct’ Price from Multiple Oracle Sources?
Why Is a Centralized Exchange’s TWAP More Susceptible to Manipulation than a Composite Index TWAP?

Glossar