CADLI (CCData Adaptive Diversified Liquidity Index) is an adaptive framework designed for precise, reliable, and agile USD price discovery in digital assets. Leveraging CCData’s advanced data analytics, CADLI solves many complex challenges traders, analysts, and investors encounter in digital asset valuation.
As US regulation has tightened, trading patterns have evolved; a significant portion of the market has transitioned from asset-USD trading to stablecoin-based trading pairs and to other forex currencies (EUR, GBP, TRY, etc.) that have less hostile regulatory environments. This shift has created a need for a more adaptive and diversified index that can accurately represent the USD value of an asset. CADLI addresses this gap by being flexible enough to include a multitude of trading pairs (stablecoins, forex, other CADLI assets), and offers robust market wide metrics.
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Key Features
CADLI aggregates trading data across multiple markets to calculate a volume-weighted average price in USD. It continuously incorporates new markets if they meet qualification criteria on active exchanges. With 24-hour trading volumes weighting, CADLI offers robust price representation while eliminating the impact of anomalous pricing in illiquid markets.
- Time Penalty Logic — One unique aspect of CADLI is its time penalty logic, which adjusts the ‘liveliness’ of price data. Specifically, the 24-hour trading volume’s time penalty starts at 1% for a 1-minute time-since-last-trade and escalates up to 99.99% at 25 minutes. This feature ensures the index relies on the most current and relevant data.
- Outlier Detection — CADLI includes an advanced outlier detection system. This threshold is revised hourly and depends on the number of active constituent instruments. For indices with 10 or more active instruments (instruments that have at least one trade in the last 24 hours), the threshold is 5%; for 3 to 9 active instruments, it is set at 10%.
- Adaptive Architecture — The architecture of CADLI is modular, which means it is like building blocks that can be added or removed without affecting the entire structure. This modularity allows for the seamless incorporation of new data sources and methods for calculating asset prices, ensuring that CADLI stays ahead of the curve. This is especially useful for Tokenized Real World Assets price discovery.
- High-Frequency Resilience — To deal with high trade frequencies that are typical in digital asset markets, CADLI’s index family is distributed across multiple instances. This dispersed structure ensures uninterrupted and precise index calculations, even during times of intense market activity. CADLI has been rigorously tested to operate optimally at a throughput of 500,000 trades per second, ensuring high performance and scalability.
- Real-Time Composition- Understanding the importance of timely information, CADLI recalculates its composition on an hourly basis. This ensures that the index always includes the most up-to-date and relevant instruments. Whether it’s the latest trending cryptocurrency or a newly active trading platform, CADLI captures it all.
- Impressive Scale — As of September 2023, CADLI boasts an expansive underlying data set with over 30,000 constituent instruments that come from over 150 centralized exchanges, 10 decentralized finance platforms, and 330 forex, stable coin, or wrapped tokens. These form more than 3500 unique index instruments, each giving you an accurate USD price for a specific digital asset. This scale not only speaks to CADLI’s comprehensiveness but also its capacity to offer granular, asset-specific insights.
- Security Measures — Built on CCData’s established infrastructure, CADLI features robust security protocols, including multiple layers of redundancy and real-time verification checks. These measures enhance data integrity and guard against potential manipulation or corruption, thereby enhancing the reliability of the index.
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Conclusion
CADLI sets a new benchmark for liquidity indices in the digital asset domain by addressing the dynamic needs of its market and stakeholders. Its robust architecture and user-centric features make it an indispensable tool for traders, analysts, and investors in the digital asset market.
Explore the CADLI REST endpoints:
- Instrument Latest Tick— This endpoint retrieves the most recent index values and other index data for specified index instrument(s) on a selected market. Also delivers the current index value, along with OHLC (open, high, low, close) metrics aggregated across diverse time intervals.
- Historical OHLCV+ Day — Get detailed index candlestick information at one-day intervals, encompassing open, high, low, and close values. This data enables a comprehensive understanding of the index’s performance over time, allowing for in-depth analysis and decision-making.
- Historical OHLCV+ Hour— Get detailed index candlestick information at one-hour intervals, encompassing open, high, low, and close values. This data enables a comprehensive understanding of the index’s performance over time, allowing for in-depth analysis and decision-making.
- Historical OHLCV+ Minute— Get detailed index candlestick information at one-minute intervals, encompassing open, high, low, and close values. This data enables a comprehensive understanding of the index’s performance over time, allowing for in-depth analysis and decision-making.
- Historical Messages By Timestamp— Returns tick-level index data (every available update) for a selected instrument on a chosen market, starting from a specified timestamp.
- Markets + Instruments Mapped— Retrieves a dictionary with one or more mapped instruments across one or more markets that are in a given state/status. The dictionary uses the instrument ID as defined by our mapping team as the key, so it will only contain instruments that we have mapped
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