📊
Price Oracle
Oracles are one of the cornerstones of a decentralized financial application. Without reliable, secure oracles, user funds could be at risk of an attack. Chainlink’s decentralized oracle infrastructure, high quality data, and security-reviewed node operators fetch and aggregate market data from numerous premium data aggregators.
This provides the Ooki protocol extensive volume adjusted market coverage across all DEX and CEX trading environments, ultimately arriving at a price feed that is highly available, accurate, and tamper resistant. Chainlink oracles are used at three critical junctures in the protocol:
- opening a loan/trade
- liquidating a loan/trade,
- dispensing protocol rewards.
When opening a loan/trade and liquidating a loan/trade, it is critical to verify that the collateral after the liquidation incentive exceeds the borrowed amount and/or meets the parameters for closure.
When dispensing tokens in exchange for activity, it is critical that the disbursement does not exceed the payment. Since the protocol is not natively aware of the price of its own network token, Chainlink oracles provide the most fitting solution.
- Chainlink does not suffer from an insufficiently decentralized oracle, and the security of its infrastructure is able to scale with the value in our contracts.
- Chainlink provides access to high quality data, due being able to access credentialed APIs. As a result, they avoid low quality data sources, such as those pulled from a single source that doesn’t provide the actual market price across various market conditions.
- Chainlink provides high quality node operators, maintains high quality control standards around their nodes, and provides unprecedented transparency regarding their node operators, strengthening the oracle’s reliability in producing consistently trusted oracle reports. Their solution does not rely on security through obscurity to create a false sense of security, or provide almost no provable information about the nodes we’d actually be relying on to provide price data to our smart contracts.
Last modified 9mo ago