๐ง๐๐ ๐ฆ๐ ๐๐ฅ๐ง๐๐ฅ ๐๐๐๐ ๐๐๐๐ข๐ ๐๐ฆ, ๐ง๐๐ ๐ ๐ข๐ฅ๐ ๐๐ง ๐ก๐๐๐๐ฆ ๐ฅ๐๐๐๐๐๐๐ ๐๐๐ง๐
One of the easiest things to overlook in DeFi is the information flowing underneath every automated transaction.
Users see a lending market.
They see a swap.
They see collateral.
They see a liquidation.
They see a smart contract executing exactly as programmed.
But behind many of these actions is another question:
๐ช๐ต๐ฒ๐ฟ๐ฒ ๐ฑ๐ถ๐ฑ ๐๐ต๐ฒ ๐ฐ๐ผ๐ป๐๐ฟ๐ฎ๐ฐ๐ ๐ด๐ฒ๐ ๐๐ต๐ฒ ๐ถ๐ป๐ณ๐ผ๐ฟ๐บ๐ฎ๐๐ถ๐ผ๐ป ๐ถ๐ ๐ป๐ฒ๐ฒ๐ฑ๐ฒ๐ฑ ๐๐ผ ๐บ๐ฎ๐ธ๐ฒ ๐๐ต๐ฎ๐ ๐ฑ๐ฒ๐ฐ๐ถ๐๐ถ๐ผ๐ป?
That is where oracle infrastructure becomes critical.
โข ๐๐๐ข๐๐๐๐๐๐๐ก๐ฆ ๐๐ข ๐ก๐ข๐ง ๐ก๐๐ง๐๐ฉ๐๐๐ฌ ๐๐ก๐ข๐ช ๐ช๐๐๐ง ๐๐ฆ ๐๐๐ฃ๐ฃ๐๐ก๐๐ก๐ ๐ข๐จ๐ง๐ฆ๐๐๐
A blockchain can verify what happens on-chain.
A smart contract can enforce predefined rules.
But external markets exist beyond that native environment.
The price of an asset can move.
A market condition can change.
An external event can occur.
A real-world data point can become relevant.
For decentralized applications to react to these conditions, external information has to reach the blockchain in a usable form.
That is the role the oracle layer helps address.
โข ๐ช๐๐ฌ ๐ง๐๐๐ฆ ๐ ๐๐ง๐ง๐๐ฅ๐ฆ ๐๐ข๐ฅ ๐๐๐๐
Consider a decentralized lending protocol.
A user deposits an asset as collateral and borrows against it.
The smart contract already contains the rules governing the position.
But the value of that collateral is not static.
If the market moves sharply, the value of the position changes with it.
The protocol therefore needs relevant price information to evaluate the position according to its programmed conditions.
@justinsuntron
#TRONEcoStar @WINkLink_Official
One of the easiest things to overlook in DeFi is the information flowing underneath every automated transaction.
Users see a lending market.
They see a swap.
They see collateral.
They see a liquidation.
They see a smart contract executing exactly as programmed.
But behind many of these actions is another question:
๐ช๐ต๐ฒ๐ฟ๐ฒ ๐ฑ๐ถ๐ฑ ๐๐ต๐ฒ ๐ฐ๐ผ๐ป๐๐ฟ๐ฎ๐ฐ๐ ๐ด๐ฒ๐ ๐๐ต๐ฒ ๐ถ๐ป๐ณ๐ผ๐ฟ๐บ๐ฎ๐๐ถ๐ผ๐ป ๐ถ๐ ๐ป๐ฒ๐ฒ๐ฑ๐ฒ๐ฑ ๐๐ผ ๐บ๐ฎ๐ธ๐ฒ ๐๐ต๐ฎ๐ ๐ฑ๐ฒ๐ฐ๐ถ๐๐ถ๐ผ๐ป?
That is where oracle infrastructure becomes critical.
โข ๐๐๐ข๐๐๐๐๐๐๐ก๐ฆ ๐๐ข ๐ก๐ข๐ง ๐ก๐๐ง๐๐ฉ๐๐๐ฌ ๐๐ก๐ข๐ช ๐ช๐๐๐ง ๐๐ฆ ๐๐๐ฃ๐ฃ๐๐ก๐๐ก๐ ๐ข๐จ๐ง๐ฆ๐๐๐
A blockchain can verify what happens on-chain.
A smart contract can enforce predefined rules.
But external markets exist beyond that native environment.
The price of an asset can move.
A market condition can change.
An external event can occur.
A real-world data point can become relevant.
For decentralized applications to react to these conditions, external information has to reach the blockchain in a usable form.
That is the role the oracle layer helps address.
โข ๐ช๐๐ฌ ๐ง๐๐๐ฆ ๐ ๐๐ง๐ง๐๐ฅ๐ฆ ๐๐ข๐ฅ ๐๐๐๐
Consider a decentralized lending protocol.
A user deposits an asset as collateral and borrows against it.
The smart contract already contains the rules governing the position.
But the value of that collateral is not static.
If the market moves sharply, the value of the position changes with it.
The protocol therefore needs relevant price information to evaluate the position according to its programmed conditions.
@justinsuntron
#TRONEcoStar @WINkLink_Official