Greetings everyone! We are thrilled to share our latest creation: Price Oracle. Our system is designed to be a step ahead of the current oracle solutions by offering a permissionless and reliable alternative.
We have reached out to the Euler team with a proposal which explains the product and how it aligns with Euler’s needs. We will post this proposal shortly in the forum so that everyone can better understand our solution and its potential benefits.
However, we understand the importance of open discussion and would like to contribute to this conversation. In response to the comment above, we have identified both the advantages and drawbacks of having a Price Oracle for the EUL token.
Pros:
- New level of protection against multi-block attacks enabled by PoS. This upgrade to the existing oracle solution would significantly enhance Euler’s Oracle Rating.
- The integration of Price Oracle implies depositing liquidity to the Full Range position without incurring fees. This would result in a more cost-effective solution compared to current alternatives.
- The automatic on-chain management of fees by Price Oracle means that there is no need for any DAO members to allocate time or resources towards maintaining it.
- The integration of Price Oracle would also enable higher price precision (12min TWAPs), reducing the risk of bad debt for the Euler protocol.
- Euler can use this opportunity to test the effectiveness of Price Oracle in a real-world scenario. If the results are positive, it could be integrated for other pairs, thereby reducing the risk for many assets.
- By integrating with Price Oracle, EUL could be integrated into other markets, increasing demand for the EUL token.
- Price Oracle doesn’t icurr any fees. It is a permisionless public goods project.
Cons:
- Price Oracle is a new solution with no prior track record, as it has yet to be launched on mainnet after successful testnet trial period.
- The oracle is currently under internal audit. We also shared the code with the Euler team and other interested parties. As always happens with smart contracts, it’s still possible that unknown vulnerabilities may exist.
- The unwinding process of the seeded liquidity is a multistep and heavily delayed process.
We are confident that Price Oracle will revolutionize the way oracles are used, and we look forward to discussing this opportunity with the Euler community.
This is a chance for Euler to take the forefront of innovation and play a crucial role in shaping a decentralized, open and secure future. By embracing this opportunity, Euler can demonstrate its commitment to advancing the blockchain industry and making it more accessible.