Can DeFi oracles be better?

Quick Take

  • Currently, most DeFi protocols, as well as oracle providers, use a federated model for their oracles
  • Uniswap v2 introduced secure oracles only with on-chain prices yesterday
  • In Q2 2020, UMA will be launched with a new oracle design that uses voting and a variable-fee policy for protocol operation
As The Block Research explored in a recent report, both Maker and Compound have a common feature: data is collected from a third-party source and then sent to a smart contract. Given the significance of oracles for DeFi protocols, the third-party data feeds are chosen either directly by the protocol or through governance frameworks. This […]

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