Equilibrium, the company behind the development of the EOSDT stablecoin, has announced that it has integrated oracles through the solution provided by LiquidApps, called LiquidOracles.
As explained by the post, oracles are an important component for decentralized finance (DeFi) because they provide the essential information to operate in this sector, first and foremost the price of the asset, which should be provided in a short time and possibly in a decentralized manner.
Most oracles are based on data and price averages provided by the various centralized exchanges, so they take their APIs, process the data and create the oracle of the relevant assets that other projects can then integrate.
For instance, think of the various lending protocols in which an important element is the control of the liquidation ratio that allows establishing whether the price of the asset is sufficient to keep the position open, as explained by the CEO of Equilibrium, Alex Melikhov:
“Having accurate, reliable price information is extremely important for the EOSDT stablecoin. The system relies on the actual asset prices to do mark-to-market, “bad” debt wipeout, and other operations. With LiquidOracles, we’ve found a solution that is engineered to work seamlessly in any condition and can remain unaffected by congestion or network fees. We look forward to expanding our offering further as DSPs on the DAPP Network”.
Unfortunately, a centralized system of this type has several disadvantages, primarily the slowness of updates and the need to rely on a centralized system, resulting in the possibility of bugs and hacker attacks.
This is where decentralized oracles like those of Chainlink (LINK) come into play, which allow taking data directly onchain and reporting them at extreme speed, avoiding problems similar to what happened during the crypto crash in mid-March.
Equilibrium and LiquidApps
As far as the EOS blockchain is concerned, a project that is becoming increasingly popular is that of LiquidApps, which has managed to set up several solutions dedicated to this blockchain, such as vRAM, LiquidSchedular, LiquidStorage and LiquidOracles. The latter, as the name suggests, is a decentralized oracle that can take any number of data sources requested by the dApp developer. The dApp developer decides which data sources will be addressed by the service, and then the results are being dealt with per the logic of the specific dApp smart contact.
- The dApp developers may require a minimum of 3 responses;
- They may specify all responses must be the same;
- They may also take an average, median, or apply any other sort of logic/math calculation they wish with the responses they have received;
- Or they can choose to combine some of the above
Essentially, it’s in their hand to choose what to do with the information in the smart contract level, LiquidOracles provides them with the information.
LiquidOracles is of crucial importance for dApps in the DeFi world, as pointed out by CEO Beni Hakak:
“LiquidOracles are crucial to supplying data with a high degree of integrity to DeFi dApps. We are excited that Equilibrium has decided not only to integrate LiquidOracles but to scale their impact by becoming DSPs on the DAPP Network. Now third-party developers can gain access to Equilibrium’s resilient price feeds and seamlessly integrate them within their dApps.”
Perhaps LiquidOracles will also become Everipedia‘s choice for its IQ digital asset, which will open a new scenario of applications in decentralized finance (DeFi), not to mention the success of pBTC on this blockchain, indicating that the future of EOS lies in DeFi.