June 30, 2021, 4:59AM EDT
• 10 min read

An overview of oracle-reliant market makers

Quick Take

  • We are witnessing an increasing usage of oracles in decentralized spot exchanges and perpetual derivatives exchanges
  • Funding rates on perpetual futures exchanges require input from oracles to make the contract price close to the spot price
  • The update frequency of existing price oracles is not sufficient for operating a decentralized spot exchange that continually tracks external prices

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