Is PIO Decentralized ?

PIO is designed to concentrate high risk on Oracle only at the close and liquidation phase, allowing us to design specialized granular risk to handle high frequency, decentralization, and trustlessness. Liquidity risk is isolated to liquidity providers and cannot reach users.

1. Frontend: Frontend is a relationship of trust between the deployer and the user. The user must verify the transactions they sign. For full decentralization, users can deploy their own front end in 20 minutes, trading fee-free.

2. Triparty: Triparty can censor but cannot steal any money. A user can deploy their own triparty in days. Symphony's triparty auto-discovery from the blockchain is on the roadmap.

3. Symphony Bot Swarm: P2P counterparties can choose not to respond to closing at the limit price but will face forced closing at the Oracle Price if that happens. Symphony deployers do rely on their broker for price and liquidity, but in any case, a censor of one symphony member can affect its counterparty. At worst, a liquidation will happen and the counterparty will earn a fat Default Fee covering trade opportunity losses and early exit costs. Default Fee % is based on Notional amount and is defined in the open quote. Each symphony deployer is responsible for managing trust risks with the centralized broker at their expense.

4. Oracle: Pion Network Nodes use deployable proxy price sources. Each Pion Network node must configure the PIO app in their config to join validation. Each Oracle Node chooses a quorum of x price proxies to determine price.

5. Price Proxy: Anyone can deploy a price proxy by adding API keys from the Price provider or can extend to a new price provider. The majority of price providers depend on regulated entities that cannot distinguish between a PIO Validator and a non-PIO Validator. The price proxy entity allows rapid reaction to the censorship of the Validator through the price provider.