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Decentralized finance continues to innovate. However, it remains sensitive to problems relating to Oracles. To remedy this, MakerDAO has expanded the source of its Oracle data, with the addition of 4 new recognized sources.
Back to the problem with the Oracles
First, let's go back to the Oracles and the problems they pose. First, remember that a blockchain is only able to read its own data. As a result, it is impossible for it to recover external data, such as the price of an asset. This is where Oracles come in.
These computer programs allow a blockchain to recover data external to it.
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Unfortunately, irreparable events can occur in the event of a bug or excessive network congestion. In this case, the oracles can no longer provide the right data, as during the ETH crash last March.
4 new sources for MakerDAO
Thus, taking into account this experience and so that such an incident does not happen again, the MakerDAO teams decided to expand the Oracle system.
Thus, on Thursday July 9, MakerDAO announced the improvement of its Oracle system. In practice, the teams in charge of protocol announced the addition of four streams (feeds) of different data to power their Oracle.
These flows maintained by actors external to MakerDAO communicate data external to the blockchain to the Oracle. Concretely, the following 4 flows were added to the protocol following governance votes:
- The liquidity aggregator, Kyber Network .
- The Ethereum API, Infura .
- The Ethereum explorer, Etherscan .
- The Web 3 development community, Gitcoin .
The four additional sources added by MakerDAO - Source: Blog.Makerdao
It is clear that MakerDAO does not want to relive its dark hours. Adding new sources for its oracle brings a new layer of resilience to the system.
"If one stream breaks down due to a service disruption, for example, or provides information very different from another (due to price fluctuations on a particular exchange or deliberate interference), there is many other streams that work together to ensure an accurate image. "
As we can see, the four sources come from completely different horizons and organizations, some centralized, others decentralized. Thus, MakerDAO ensures the diversity of data, and thereby tries to improve their reliability.
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