Mettalex, a decentralized commodities derivatives exchange on Fetch.ai, is integrating industrial-grade price feeds in the DeFi ecosystem leading to higher blockchain efficiencies following their partnership with S&P Global Platts.
Mettalex Empowers Commodity Traders
Details on January 25 revealed that the deal would be advantageous to traders and businesses. Notably, Mettalex global traders would have access to unique commodities markets with a guarantee of smooth operations due to the use of premium and secure price feeds supplied by S&P 500 Platts.
Meanwhile, businesses’ pain points would be quickly relieved as the availability of credible commodity and energy information on the blockchain encourages creators to develop community-facing automated market maker (AMM) models. At the same time, the availability of better risk reduction methods from solutions anchored on a reliable base layer translates to higher capital and cost efficiencies, all of which further help democratize access to the commodities market.
The Role of Dependable Price Feeds in DeFi Innovation
Matt Eversman, the Director of Licensing and Exchange Relationships for S&P Global Platts, said Mettalex’s decision to integrate their price feeds recognizes the crucial role access to reliable data is especially when rolling out innovative solutions. According to the Director, their data would bring more efficiency in the Mettallex’s marketplace:
“We’re pleased that Mettalex recognizes the value of the transparency S&P Global Platts brings to the commodities markets we serve and that it endeavors to utilize our data in innovative new ways as new technologies continue to bring efficiency to the marketplace.”
Bringing the $20 Trillion Commodity Market to DeFi
Mettalex is a decentralized commodities derivatives platform on Fetch.ai—a distributed ledger incorporating artificial intelligence and machine learning techniques for efficiency and privacy preservation.
Their core mission is to bring the global commodities market estimated to be worth at least $20 trillion to DeFi. From their easy-to-use interface, traders would trade confidently, posting long or short positions confidently as they use the industrial-grade energy and commodity price feeds supplied by S&P Global Platts. More users would easily access unique and niche commodity markets with a reliable base exploring more trading opportunities.
S&P Global Platts is an established provider of valuable market insights that traders can use to make valuable decisions in risk management. With a global presence, S&P Global Platts has grown to be a leading independent supplier of information and benchmark prices for the commodities and energy markets.
The Founder of Mettalex believes that, gradually, more commodity assets would be available on-chain. The migration of commodity instruments to DeFi has only been accelerated with the integration of S&P Global Platts’ price feeds:
“We believe that a wide range of commodity assets will eventually become tradable on-chain. Mettalex’s mission is to advance this process by enabling the market to manage risk, particularly in new niche commodities markets, and democratizing access to the raw materials asset class. We are thrilled to have one of the leaders in the price benchmarks space, S&P Global Platts, to help us in this endeavor.”
The partnership is amid a recovering global economy punctuated by soaring commodity prices. Analysts pin the surge on various factors, including high demand for raw materials as economies open up, supply-side hitches because of the COVID-19 disruptions, and financial elements such as the depreciation of the USD.