𝗧𝗵𝗲 𝗠𝗼𝘀𝘁 𝗜𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁 𝗡𝘂𝗺𝗯𝗲𝗿 𝗜𝗻 𝗔 𝗟𝗲𝗻𝗱𝗶𝗻𝗴 𝗔𝗽𝗽 𝗠𝗮𝘆 𝗖𝗼𝗺𝗲 𝗙𝗿𝗼𝗺 𝗢𝘂𝘁𝘀𝗶𝗱𝗲 𝗧𝗵𝗲 𝗖𝗵𝗮𝗶𝗻
A collateral ratio may look like a simple calculation, but its output depends on the values supplied to the calculation.
If the price of collateral changes, the protocol may need to reassess borrowing capacity and liquidation risk. The contract can perform that arithmetic, but it requires suitable price information first.
𝗪𝗵𝗲𝗿𝗲 𝗢𝗿𝗮𝗰𝗹𝗲𝘀 𝗙𝗶𝘁
➤ External market sources provide price observations.
➤ An oracle service delivers the relevant data to the application.
➤ The lending contract applies its collateral and risk parameters.
➤ The protocol's resulting action depends on the data and those rules.
WINkLink price services can support this data dependency for TRON applications.
The lesson for developers is that financial safety cannot be reduced to checking whether a formula is correct. The inputs, update assumptions, and behavior during abnormal conditions also deserve scrutiny.
A correct calculation using an unsuitable input can still produce the wrong decision.
@Justin Sun孙宇晨 @WINkLink_Official
#WINkLink #TRONEcoStar
A collateral ratio may look like a simple calculation, but its output depends on the values supplied to the calculation.
If the price of collateral changes, the protocol may need to reassess borrowing capacity and liquidation risk. The contract can perform that arithmetic, but it requires suitable price information first.
𝗪𝗵𝗲𝗿𝗲 𝗢𝗿𝗮𝗰𝗹𝗲𝘀 𝗙𝗶𝘁
➤ External market sources provide price observations.
➤ An oracle service delivers the relevant data to the application.
➤ The lending contract applies its collateral and risk parameters.
➤ The protocol's resulting action depends on the data and those rules.
WINkLink price services can support this data dependency for TRON applications.
The lesson for developers is that financial safety cannot be reduced to checking whether a formula is correct. The inputs, update assumptions, and behavior during abnormal conditions also deserve scrutiny.
A correct calculation using an unsuitable input can still produce the wrong decision.
@Justin Sun孙宇晨 @WINkLink_Official
#WINkLink #TRONEcoStar
