Vitalik Buterin believes that Uniswap should become an oracle sign

UNIVERSITY, the native character of Uniswap pIt can greatly improve its usefulness by becoming a stablecoin award oracle. according to the co-founder of Ethereum (ETH), Vitalik Buterin.

In a proposal submitted to the Uniswap governance platform, Buterin said that a successful DeFi ecosystem relies on a “highly secure award oracle”, Recalling that algorithmic stablecoins, synthetic assets and secured loans depend on oracles. The problem, however, is that Uniswap does not currently offer an oracle for the price of ERC20 tokens in the strictest sense.

“That’s a problem,” said Buterin, adding “Algorithmic stablecoins need an oracle for the ETH / USD price to work, and they specifically need an oracle for the US dollar, the off-chain fiat asset, and no specific on-chain instantiation of the US Dollars. “

Vitalik Buterin believes that Uniswap should become an oracle sign
Vitalik Buterin believes that Uniswap should become an oracle sign

Your suggestion is:

“I recommend Uniswap and the UNI-Token to provide such an oracle (e.g. modeled on Augur or UMA) that specializes in providing robust and extremely expensive price data. Manipulate and attack.”

Althoughe Chainlink is used by many projects The main supplier of oracles would be better served with one “A more minimalist alternative that focuses more on optimizing incentives and maximizing attack costs.” UNI is in a unique position to complement Chainlink, he said.

Uniswap offers added value for many reasons, especially due to its high market capitalization. As Buterin emphasized, UNI and LINK are the two largest projects at ETH. Interestingly, Uniswap just outperformed Chainlink as the largest DeFi protocol with a total market cap of $ 22 billion. LINK is valued at $ 20.1 billion.

By supporting award oracles and thus a more robust stable coin ecosystem, Uniswap would be in a better position to generate much higher revenues through trading fees. “If we see robust, high-volume synthetic assets also emerging in the chain, it would be even more valuable to Uniswap.” He said.

Buterin’s proposal had received more than 11,600 views and 50 responses at the time of going to press.

Similar Posts