Pro
An Overview of DeFi Price Oracles
What is an Oracle?
Oracles are the middlemen that bridge the gap between real-world (off-chain) services and blockchain (on-chain) protocols. Oracles retrieve off-chain data and post this data to the blockchain for smart contract consumption. They also relay messages and instructions from a smart contract to off-chain external systems. In addition, oracles must also ensure that the data that they provide is accurate and resistant to manipulation.
The ideal price oracle should embody the following:
- A high-level accuracy – The price oracle values should reflect the current data.
- Non-gameable – The oracle should be resistant to manipulation.
- Timeliness – The data from the price oracle should provide accurate data on a timely basis, preferably every block.
- Decentralized – The oracle price is verified in a decentralized and permissionless system.
Let us know what you loved about the report, what may be missing, or share any other feedback by filling out this short form. All responses are subject to our Privacy Policy and Terms of Service.
