Money market protocol Compound has released its own price oracle as part of its efforts to migrate to the Open Price Feed, its permissionless, upgradable price feed.
A price oracle is a third-party, decentralized feed that provides the data necessary to carry out smart contracts. Many Open Finance platforms use price oracles to offer their users different services like margin trading and lending.
The protocol has been running testnet deployments for the past ten days, the details of which are available on GitHub, according to a blog post published by Compound on Friday.
According to the post, Compound is running an aggregator wherein users can fetch data on reported prices. These prices are available directly from each reporter via their public APIs. Compound has also created a continually updated notebook that allows anyone to post the current prices to the chain at any given moment.
Compound has also created a price page that allows users to check the current state of the system. According to the post, the information is also available on-chain.
Compound developed the Open Price Feed to ensure the crypto community can maintain and upgrade a price feed that doesn't rely on Compound infrastructure and processes. The feed allows "reporters" to submit price data using a known public key, which "posters," i.e. any Ethereum address, can submit on-chain.