Yes, restricting $ GME trading proves DeFi will win.
Making a wrapped GME on @UMAprotocol requires UMA token holders to approve the GME/USD price identifier in an UMIP—this takes 2-3 days.@kaiynne can share how to do it on Synthetix, but will require a Chainlink price feed. https://t.co/GIwGXqr1JI
– Hart Lambur (@ hal2001) January 28, 2021
You can launch a GME token on the UMA platform if holders of UMA tokens approve the creation of a GME / USD trading pair. According to Lambour, this can take up to three days. At the same time, the GME price for a synthetic token can be tied to the underlying asset using Chainlink oracles.
Lambour also added that the synthetic token will not affect the value of the underlying asset, but rather act as an option on GME.
Old stocks in a new way
However, not everyone in the Defi community-supported Labour’s proposal. Some users claimthat the UMA is unlikely to be suitable for the implementation of the conceived because of the oracle of management.
I think a key difference here is that UMA uses a governance based oracle which can take 2-4 days for settlement, while Synthetix uses real time API based Price Feeds for instant settlement
Two derivatives platforms with very different design requirements and offerings
– ChainLinkGod.eth (@ChainLinkGod) January 28, 2021
In the case of UMA, the site uses an oracle with a price calculation of several days. Such a long update may be unacceptable for many. Users are already citing alternative solutions, including the Synthetix liquidity protocol, which generates a price based API in real time.
Earlier, users of the American service Reddit decided to start buying shares of unprofitable companies “for fun”. As a result, in the period from January 8 to January 25, the value of GameStop shares soared from $ 18 to $ 157.
Nevertheless, amid the general hype, the trading platforms Robinhood, TD Ameritrade and Interactive Brokers decided to restrict trading in hype stocks, including GameStop.
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