The price oracle for Coinbase is here
The price oracle for Coinbase is here
Crypto

The price oracle for Coinbase is here

By Alfredo de Candia - 24 Apr 2020

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The Coinbase exchange has announced the launch of its price oracle dedicated to decentralized finance (DeFi).

The opening words of Coinbase’s announcement are linked to what happened in the last few weeks, which involved decentralized finance (DeFi) suffering losses of millions of dollars, suggesting that both traditional and decentralized exchanges (DEX) can be subject to manipulation or bugs when it comes to prices.

Here is where Coinbase’s price oracle comes in – all the documentation is here – which, thanks to the data provided directly by Coinbase Pro, one of the most famous exchanges in the crypto world, will allow anyone to integrate the API to have a reference price for the BTC-USD and ETH-USD markets; moreover, with the public key of the oracle anyone will be able to verify the authenticity of the data.

Sometimes the volumes of an exchange may not correspond to the truth, but if these APIs are used, the users can trust what they see, an advantage that both exchanges and other protocols would get. Compound CEO Robert Leshner stated:

“Coinbase Oracle will increase the security and decentralization of Compound’s price feed, which is mission-critical to the protocol and the ecosystem of applications built on top of Compound. We’re not alone – the rest of DeFi will benefit with faster development, consistent data, and shared standards.”

The CEO of dYdX, Antonio Juliano, is of the same opinion. He reaffirms the reliability of Coinbase and its products like this oracle:

“A Coinbase Price Oracle will be hugely impactful for the DeFi ecosystem – price oracles are used in every lending & derivatives protocol. Coinbase is uniquely positioned to provide oracle prices as they’re the most trusted and secure institution in the space. These prices can be used as an input to help create more decentralized and secure price oracles for the ecosystem.”

At this point, it seems that decentralized finance has obtained a new tool to alleviate and mitigate a deficient aspect of this sector which, without a certain and secure point of reference, would be easily circumvented and could suffer possible attacks or failures in the system.

 

Alfredo de Candia
Alfredo de Candia

Android developer for over 8 years with a dozen of developed apps, Alfredo at age 21 has climbed Mount Fuji following the saying: "He who climbs Mount Fuji once in his life is a wise man, who climbs him twice is a Crazy". Among his app we find a Japanese database, a spam and virus database, the most complete database on Anime and Manga series birthdays and a shitcoin database. Sunday Miner, Alfredo has a passion for crypto and is a fan of EOS.

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