OKCoin fired up its own price oracle for the DeFi space with data traceable back to its origin, offering verified accuracy.
"OKCoin has launched OKCoin Oracle, a signed price feed that can be used for reliable on-chain pricing in support of the burgeoning DeFi ecosystem," OKCoin director of communications, Will McCormick, told Cointelegraph.
"OKCoin Oracle acts as a trusted source of market data, and anyone can publish OKCoin pricing on-chain. Once on-chain, OKCoin is verifiable as the source of the data, using the OKCoin Oracle public key."
DeFi booming in 2020
The DeFi space has boomed in 2020, with many related assets yielding soaring price valuations, including Balancers BAL asset, Compound's COMP token and others.
DeFi relies on crypto price data for functions and capabilities such as lending and stability. These ecosystems derive such price data from oracles, which essentially hold as a gateway between blockchain and the physical world. Oracles gather price information that various sources posted to blockchains, averaging them into one price before handing it off to smart contracts, ultimately resulting in a price point geared toward accuracy.
OKCoin's oracle aiming for added stability
Multiple DeFi entities have faced a number of difficulties in 2020, including hacks and flash loan attacks resulting in hefty losses.
"One of the prior vulnerabilities is that exchange pricing posted on-chain could come from anyone which led to some of the DeFi flash loan crises we saw earlier this year," McCormick said in reference to price oracles. OKCoin's oracle leaves an evident trail leading to its exchange, validating price came from OKCoin as a trustworthy source.
The exchange used Compound for structuring
DeFi project Compound gave OKCoin the structure and blueprints used in the oracle, McCormick explained. "Compound created the Oracle standard and made it available via API," he said.
OKCoin's oracle boasts compatibility with Compound, according to a July 15 statement from OKCoin. “Having a reliable feed for on-chain price data is critical for DeFi growth and use of Compound," Compound CEO Robert Leshner said in the statement. "This effort from OKCoin is an important contribution to the decentralized finance ecosystem."
OKCoin's oracle also touts compatibility with other interested DeFi outfits, McCormick included.