DeFi Protocol Compound (COMP) Releases Decentralized Price Oracle

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Decentralized finance (DeFi) protocol Compound launched its own price oracle yesterday as part of its efforts to migrate to the Open Price Feed. This, according to a blog post published on August 7, 2020.

Compound Unveils Decentralized Price Oracle

As part of its efforts to migrate to the Open Price Feed – Compound’s permissionless, upgradable price feed – the DeFi platform has released its own price oracle. Specifically, the Open Price Feed was developed to enable the crypto community to maintain and upgrade a price feed that does not rely on Compound’s infrastructure and processes.

For the uninitiated, a price oracle is a third-party, decentralized data feed that fetches required data for the execution of smart contracts. Several established DeFi platforms such as Maker, Synthetix, and Aave, among others, use decentralized oracle feeds to offer a wide variety of services to their users including lending and margin trading.

According to the official announcement, Compound has been running test deployments on the Kovan and Ropsten testnets for close to ten days. Notably, a proposal was passed on August 6 on Ropsten to utilize the new price feed. The price oracle has also been posting prices to mainnet, the announcement reads.

The announcement states in part,

“We are operating an aggregator, where anyone can easily fetch our mirror of the reported prices to be posted to the oracle. These prices are also readily available directly from each reporter, via their public APIs. We’ve also created a notebook to make it easy for anyone to post the current prices to the chain at any time.”

Further, the DeFi platform has also developed a price page that lets everyone check the current state of the system. All price-related information is also available on-chain without any dependency on the protocol’s infrastructure, the announcement adds.

DeFi Oracles are All the Rage

Decentralized oracle solutions such as Chainlink (LINK), and Band Protocol (BAND) have witnessed an exponential rise in demand buoyed by the rising popularity of DeFi lending platforms.

BTCManager reported on July 22 that South Korea’s largest blockchain project, ICON (ICX) had integrated Band Protocol’s cross-chain oracles to provide secure and verified data to the platform’s dApps via data oracles.

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