DeFi Oracles Infrastructure (price feeds)
The most important aspect of getting good yields is not the APY but ensuring that the buying and selling of the tokens are being done at the desired price. Anyone who has invested in DeFi had faced a situation where they were sleeping and missed the chance to exit their position when the market was at its highest. In yield generation, this process requires investing in a liquidity pool at the most appropriate time and then shifting to another protocol in a proper time again. This right time is defined in terms of the price of the assets in the liquidity pool.
Oracles provide this price. Oracles are essentially third-party services that provide accurate data to the algorithm. The algorithm then uses this data to execute the conditions and provide good returns to the users.
In a sense, oracles ensure trust in the DeFi ecosystem.
Last modified 1mo ago
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