May 6, 2020, 1:18PM EDT
• 9 min read

Oracles: a key element of DeFi

Quick Take

  • Oracles that provide price data to the blockchain are the cornerstone of most DeFi projects
  • Incorrect oracle designs can lead to the loss of user funds, as was the case with the second bZx attack
  • Among the main DeFi protocols, Maker has the most decentralized oracle system, on which dYdX relies, whereas Compound uses a centralized feed

Join The Block Research for exclusive research like this

Gain access to this research piece and 100s of others, including ecosystem maps, company profiles, and topics spanning DeFi, CBDCs, banking and markets. Together with additional services, we help organizations understand what’s happening in the rapidly developing digital asset ecosystem.

Already a Research Member? Login Here