Cryptocurrencies

Decentralized Finance [DeFi] – Compound (COMP) ready to deploy its own Oracle – Cryptocurrencies

Compound (COMP) going too fast? Her market cap had recently passed $ 1 billion and the project didn’t wait long to release her new baby. Thanks to the new oracle and the COMP token, Compound would look more and more like a well-known crypto – I’ll let you read the entire article, to find out his name.


Compound uses an oracle

Compound is about to introduce a price oracle in its protocol: theOpen Price Feed will allow the project Compound to analyze the borrowing capacity of each user and to measure liquidation thresholds.

The Oracle is currently being tested on several networks, including testnets Kovan and Ropsten ofEthereum (ETH). Price feeds have been available on the main network for 10 days.

The developers of Compound urge the community to experience the oracle as soon as possible, so that it can be deployed as soon as possible.

2 steps towards independence for Compound

TheOpen Price Feed is based on a price declaration and display process. The registrants will mainly be exchanges that will regularly validate the data with their public key: Coinbase Pro is the first exchange registered as declarer.

Viewers will publish the validated data on the blockchain: as this process does not require authorization, anyone can become a viewer.

Open Price Feed also uses flow Uniswap V2 as a guarantee: if the declared prices vary by more or less 20% of the weighted average of the prices Uniswap, the collected data will be ignored.

Ultimately, when the number of declarants is high enough, the system will stop using Uniswap as an alternative.

Compound also launched its token, COMP, as part of the establishment of a decentralized governance system.

50% of the available tokens will be distributed to protocol users; the rest will be allocated to the founding team of Compound.

Thanks to the’Open Price Feed and the token COMP, the protocol is no longer operated by Compound Labs and continues to evolve independently of its creators, like a certain Bitcoin (BTC).

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Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

Beyond the technical ingredients, we must not forget the very foundation of the Open Price Feed: supporting the launch of the Compound loan system. The other benefit of this new oracle is that it participates in the decentralization of the Compound project. A blockchain that is positioned as an ideal solution for the protection of copyright but, whose projects must detach themselves from their creators to be more credible: the whole paradox of the combination “Transparency, reliability and decentralization”.

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