A First Look into DeFi Oracles

Understand

Recently emerging Decentralized Finance (DeFi) takes the promise of cryptocurrencies a step further, leveraging their decentralized networks to transform traditional financial products into trustless and transparent protocols that run without intermediaries.

• However, these protocols often require critical external information, like currency or commodity exchange rates, and in this respect they rely on special oracle nodes.
• In this paper, we present the first study of DeFi oracles deployed in practice.
• First, we investigate designs of mainstream DeFi platforms that rely on data from oracles.