The Coinbase Price Oracle
The major crypto exchange Coinbase has announced to introduce a DeFi price oracle which will give a key service to the DeFi ecosystem. The Coinbase price oracle is a signed price feed and is sourced from the Coinbase Pro exchange.
This newly introduced feature will allow anyone to publish data on-chain. The Coinbase price oracle will provide price data for the markets of BTC-USD and ETH-USD and will be updated within the duration of one minute. According to the announcement made on April 23, 2020, the price data is signed using the private key of Coinbase and users can get access to this signed price data through the Coinbase Oracle API. The authenticity of the price data can also be verified with the help of the Coinbase Price Oracle public key.
COINBASE JUST LAUNCHED A DEFI PRICE ORACLE
Every crypto bank will follow
Exchanges will work for Ethereum too
Earlier this year I predicted…
“At least one A-rated crypto exchange will adopt the DAI Savings Rate sometime in 2020.”
One step closer
— Ryan Sean Adams – rsa.eth (@RyanSAdams) April 23, 2020
The crypto exchange Coinbase is using a similar infrastructure to ensure the security of the Coinbase Oracle which it uses to store a large number of crypto assets.
Impactful for the DeFi ecosystem
The Coinbase Oracle will give reliable and trustworthy information and it will make the DeFi ecosystem more secure and safe than before. According to the CEO of dYdX Antonio Juliano, this price oracle is very beneficial for the Decentralized Finance (DeFi) ecosystem and will have a major impact on it as dYdX CEO states:
“A Coinbase Price Oracle will be hugely impactful for the DeFi ecosystem — price oracles are used in every lending & derivatives protocol. Coinbase is uniquely positioned to provide oracle prices as they’re the most trusted and secure institution in the space. These prices can be used as an input to help create more decentralized and secure price oracles for the ecosystem.”
Compound CEO Robert Leshner also shares his view regarding this new feature and considers it very helpful for increasing security and decentralization. He says:
“Coinbase Oracle will increase the security and decentralization of Compound’s price feed, which is mission-critical to the protocol and the ecosystem of applications built on top of Compound. We’re not alone — the rest of DeFi will benefit with faster development, consistent data, and shared standards.”