If you are an experienced person who wants to build a DEX using a dYdX clone script, you likely know that correctness is key to sustaining in this space. In a trading platform, price updates are essential, and they change in seconds. The platform needs to be perfect and show reliable data on time. Showing wrong data in the DEX causes many negative things; it destroys confidence and users’ trust, which is hard to regain in DeFi.Let's talk about oracles, which play a key role in DeFi, even though they don’t always get the attention they deserve
Why Price Information Is Important
Accurate price tracking is the backbone of the perpetual contracts trading platform. Unlike regular trading, users often use leverage to bet on future price changes. Even small price feed errors can cause unfair liquidations, wrong profits, or complete disorder.
Consider the impact on your platform. Bad prices make traders angry, and they will leave. Negative news travels quickly.
This is where oracles come in.
Oracles Are Vital to a dYdX Clone Script.
Oracles aggregate, filter, and send outside market data to your on-chain environment. But oracles differ in quality.
If you only use one price source on your dYdX clone software, then you are taking a big risk during fast market changes. You need to consider implementing multiple source oracles, like UMA, and collect information from various trading platforms and market creators. Some newer clones of dYdX are also trying out unique mixed methods, combining on-chain and off-chain data, to improve precision.
It's not about making things too complex, but about doing things properly.
What Happens When Oracles Function Well?
Imagine this:
- A user starts a 5x long position on ETH at $3,250.
- The oracle checks aggregated price information from platforms such as Binance, Coinbase, and Kraken.
- It removes extreme values and updates the contract using an average price over time.
- If the price shifts suddenly to $3,200 due to a market move, that change is accurately reflected without overreacting to short-term noise.
No liquidations that aren't needed. No incorrect triggers. Just simple, fair trading.
This reliability improves your users’ trust in continuing to use your platform.
Push vs. Pull: Choose Carefully
You also need to decide if you want to use Push-Based or Pull-Based oracles.
- Push-based oracles automatically update and send price information regularly.
- Pull-based oracles require the smart contract to request the latest price during trade execution.
Automatically updating systems are usually faster but cost more in gas fees. Pull-based oracles are more efficient, but might have delayed information when the market is changing quickly.
Many platforms like dYdX use both to achieve fast automatic updates when things are changing a lot, and to ask for updates for regular trades.
Pick what works for your users and your budget. But choose carefully.
One More Thing: Remember Safety Measures
Even the best oracles can have problems. Your dYdX clone script should include backup plans. This could mean stopping trading for a short time if the price information stops updating or shows unusual activity.
Some dYdX clone solutions use agreement from multiple oracles—if two out of three sources disagree too much, the system stops automatic liquidations. These are not extras. They are very important.
The main point?
When you’re serious about building a DEX platform with a dYdX clone script, give importance to creating perfect oracles. Because, in leverage trading, it’s everything.