Settlement Data Oracles (SDOs) provide the crucial settlement data for the hybrid-DEX to operate.
They are similar to:
Validator Nodes - proof-of-stake blockchains typically have nodes that validate incoming transactions and reach consensus on a block. SDOs are similar, except that they validate incoming trades and reach consensus on a set of obligations.
Miners - SDOs are kind of like proof-of-work miners as well, but instead of collecting transactions, they collect trades on the hybrid-DEX. In both cases, because the miner or SDO does work, they can collect a fee for their services.
Running an SDO
The SDO software is provided open-source by Project TXA and can be installed on any computer.
At its core, running an SDO is a way for anyone to earn fees by helping support the TXA Decentralized Settlement Layer (DSL).
In general, an SDO does the following:
Records trades that are broadcast by the Hybrid-DEX (hDEX).
Tracks and maintains the trading obligations that exist between traders.
Participates in a settlement/withdrawal request by traders.
A settlement/withdrawal request spurs the following:
A trader will request settlement for all their trades through the DSL smart contracts.
A selection of "qualified" SDOs will occur. Qualified SDOs are those that have sufficient collateral to participate in the settlement.
The set of qualified SDOs will be reduced to the minimum number required for quorum.
The final set of SDOs will come to consensus on the settlement obligations and report them onchain in case of future disputes.
The SDO will charge a fee for providing the settlement data obligations.
Key parameters such as fees, collateral, and minimum SDO requirements are what make the TXA DSL DAO extremely important.
However, to properly connect to the TXA Decentralized Settlement Layer (DSL), aspiring SDO operators must also do the following:
Stake the TXA token required for their particular tier of operation.
More information on this will be released shortly.
Undergo a sign-up or KYC depending on the jurisdiction in which they operate the SDO.