Jiritsu Network Creates Custom Price Oracle Solution for Hxro Parimutuel Protocol
Custom oracle provider Jiritsu Network has created a flexible and robust price oracle solution uniquely tailored to the settlement needs of the Hxro Parimutuel Protocol.
The Jiritsu oracle fetches prices for coin pairs from multiple authoritative data sources at the precise time required by each parimutuel contest and posts the average price for each coin pair to a Solana on-chain program. A ZK consensus mechanism is applied across multiple nodes to verify that fetched prices are reliably reported and that the result was accurately computed. Anyone may repeat the process and verify any result at any time. This secure, off-chain process allows for maximum performance while ensuring accountability and fairness for Hxro’s on-chain parimutuel markets.
- Jacob Guedalia, Co-Founder of Jiritsu Network
The Hxro Parimutuel Protocol is an on-chain primitive providing the infrastructure for any peer to peer, floating strike option with a pool-based, pro-rata payoff. The protocol is currently capable of running a dual-outcome parimutuel market in any discrete time frame, using any available on-chain data oracle. It can be used for financial markets, gaming, and sports wagering, among other things.
The protocol composes with SAMM, a Hxro native Smart Automated Market Maker protocol that uses independent probability nodes, allowing liquidity pools to automatically participate in each parimutuel event's liquidity. SAMM is designed to help solve liquidity consistency problems often faced by parimutuels that run on a continuous market, while still being efficient enough to keep fees to parimutuel participants low.
“Parimutuel” describes a payoff system in which all positions (or wagers) are placed together in a common pool. Consider an N outcome event: in this case the total pool will be the sum of all individual outcome pools. The fee is then deducted, and payoff odds are calculated by sharing the total pool (net of fees) amongst all winning entries on a pro-rata basis.
Historically, parimutuel-style wagering is most commonly found in horse racing. However, this system has powerful applications across other arenas including trading, gaming, prediction markets, and sports wagering. In these contexts, parimutuel markets are generally dual-outcome. An entrant takes a position on an event's outcome, and if correct at expiration of the event, they will be distributed a pro-rata share of the payoff, which comes from the money lost by entrants who took a position on the losing side (plus their initial position).
In a trading or financial context, parimutuel markets can remove many of the complexities associated with execution and position management found in traditional double-auction trading markets. Additionally, because of the pooled nature of parimutuel markets, an imbalance in the distribution of assets to each outcome creates implied payoff odds. This creates the potential for asymmetric payoffs in cases where the imbalance becomes significant.
The protocol is designed to solve for the liquidity consistency problem typically faced in nascent markets and will support applications specializing in market segments including trading, prediction markets, and sports wagering.
Jiritsu is the first smart Oracle— powered by ZK consensus. Jiritsu goes beyond a simple price quote, and lets you know where it came from, how fast it’s changing and how it was computed.
With Jiritsu you can build custom risk management or use turn key solutions straight out-of-the-box, including anomaly detection, slippage and more. DeFi can now ensure “fair pricing”, not just the current price. With dynamic support for any API or socket and built-in automation, Jiritsu enables any DeFi use case imaginable from derivatives to real world assets.
Hxro is a decentralized derivatives primitive for risk-based applications built on the Solana blockchain. Through a series of native protocols, Hxro provides a primitive layer framework and infrastructure for a robust, fully-functional decentralized exchange for derivatives contracts (futures and options) and parimutuel contracts.
Hxro derivatives are facilitated through two of the network's native protocols - Dexterity and Spandex.
Dexterity is an open source collection of smart contracts that provides the base exchange and clearing framework for trading any instrument with a defined payoff function; this is the part of the network that handles the accounting, exchange and settlement function. To learn more about Dexterity, read the whitepaper here.
Spandex is Hxro's customized derivatives risk engine. It is the first on-chain, real-time complex risk engine to use a portfolio risk-based approach to managing user margin, risk, and liquidations.