Open Price Feed, the much-awaited Compound decentralized oracle, is all set to go live. It will be a key component of the platform’s lending operations. Presently, it is undergoing extensive testing across various channels and networks. The team spent two weeks testing it on Etehreum Kovan testnet.
The Compound decentralized oracle also spent two weeks of testing on Ropsten testnet. Calls are being made by Compound developers urging the community to try out the new price feeds during the testing phase. This will help them launch the system quickly. Extensive auditing has made sure that new features are being tested in detail before the platform goes live.
Compound decentralized oracle promises more transparency
Both posters and reporters are crucial to operating the new Compound decentralized oracle. Initially, the role of the reporter is assigned to Coinbase only, and it will undertake the duty to sign price data. More exchanges will be added later on. Next, this signed data will be published onto the blockchain by posters. Most importantly, anyone can be a poster as the system is permission-less.
Uniswap V2 price feed is also used besides the Coinbase Pro as a fallback option. This keeps a check on any errors in the price data and is termed an anchor price. The on-chain data is disregarded in case the variation in price is more than 20 percent.
Compound moving towards true community-driven mechanisms
To guard the Uniswap against attacks, especially those related to flash loans, the time-weighted average is employed. COMP token holders will pave the way for more price data sources in the future. The Uniswap fallback option may no longer be required if the system allows more price data reporters.
Compound protocol token launched earlier this year allows users to take part in various decisions with regards to the protocol. It is also essential for the liquidity mining incentive distribution.