TradeBlock is pleased to announce the launch of two new digital currency indexes–SLX and UNX–which will provide institutional quality reference rates for the USD denominated price of Solana (SOL) and Uniswap (UNI). To view all of TradeBlock’s indexes, visit our index page here.
Reliable Reference Rates for Digital Currencies
Respectively, TradeBlock’s SLX and UNX Indexes are designed to track Solana and Uniswap liquidity while adjusting for any deviations caused by anomalies and manipulation attempts at individual exchanges. The index value is a live rate that is calculated once per second based on the trading activity observed at leading exchanges for those spot USD denominated markets.
The data from all exchanges is collected in real-time and immediately cleansed and validated to ensure the reliability of all contributing trades. The data from each exchange is subsequently weighted against the cohort based on their short- and long-term trading volume. The most liquid exchanges receive a higher weighting in order to maximize the replicability of the index’s rate in the live spot markets. The index also weights every exchange based on the price variance across all data points and on the trading frequency at each venue.
Inclusion of any exchange in the index is guided by IOSCO principles for financial benchmarks. More specifically, TradeBlock takes the following into consideration:
- Liquid market in the SOL/USD & UNI/USD crosses
- Trading volume that represents a minimum of total mutually exclusive SOL/USD & UNI/USD trading volumes
- Programmatic trading of the SOL/USD & UNI/USD spot prices
- Exchange API reliability
- No restrictions on deposits and/or withdrawals of SOL, UNI, or USD
- Publicly known ownership entity
- Policies compliant with applicable regulations (AML, KYC procedures)
- Discretion of its analysts
The above changes are part of TradeBlock’s quarterly index update, whereby revisions, if necessary, are made according to the firm’s Index Methodology. This update offers transparency to the ongoing commitment for maintaining CoinDesk Indexes as industry benchmarks that accurately characterize the digital currency landscape. Quarterly updates will continue to sharpen CoinDesk Indexes, which are designed to adjust for anomalistic exchange conditions and provide reliable reference rates.