Supporting DeFi with the OKCoin Oracle

Supporting DeFi with the OKCoin Oracle

The OKCoin Oracle provides a price feed for DeFi protocols like Compound Finance

OKCoin is proud to support the decentralized finance (DeFi) ecosystem with a signed price feed that can be used for reliable on-chain pricing. OKCoin Oracle is a secure price feed that the DeFi ecosystem can use as a trusted source of signed market data from a liquid exchange regulated in multiple jurisdictions across the globe.

How it works

The OKCoin Oracle is an API endpoint available to anyone, not just OKCoin customers. The price feed is signed by OKCoin, and the private key is secured by our proven infrastructure. Our goal is to provide the DeFi ecosystem a reliable source of price information, helping remove  or diminish current oracle vulnerabilities. 

Without a credible and trustworthy price feed, any interested party can publish a price feed on-chain and claim its accuracy. If you choose to use that data, you must trust the person publishing it. OKCoin Oracle acts as a trusted source of market data, and anyone can publish OKCoin pricing on-chain. Once on-chain, OKCoin is verifiable as the source of the data, using the OKCoin Oracle public key. Reliable and trustworthy price feeds reduce systemic vulnerabilities in the DeFi ecosystem, and contribute to creating a safer environment for innovative projects and enthusiastic users. 

“Accurate on-chain pricing furthers the legitimacy of the DeFi ecosystem, ensuring end users are receiving verified information that is signed by OKCoin,” said Hong Fang, OKCoin CEO. “As a regulated cryptocurrency exchange, our goal is to establish trust within the crypto economy. Providing a reliable price feed is part of that mission.” 

Our view of DeFi

DeFi has grown significantly over the past 12 months, with a 465% increase in deposited USD supporting decentralized applications (dApps) and protocols spanning borrowing, lending, and more. According to DeFi Pulse, there is now USD 2.49 billion locked in DeFi smart contracts. DeFiprime.com lists 207 dApps across the new financial ecosystem, with 196 of those built on Ethereum smart contracts. Many protocols rely on a price feed, using the data to inform interest rates, support value-stabilizing algorithms, and provide accurate market updates to users. 

The DeFi ecosystem has grown as more blockchain-based protocols are developed to provide permissionless financial services. These projects are built on smart contracts, which rely on a public distributed ledger, often the Ethereum blockchain. This infrastructure provides DeFi with an autonomous and decentralized financial network. Permissionless services include interest-earning savings accounts, insurance, stablecoins, lending and borrowing protocols, and exchanges. DeFi protocols that require a reliable price feed include lenders like Compound, Maker (DAI), Aave, and dYdX and decentralized exchanges (DEXes) like Balancer, Bancor, and Kyber. Learn more about DeFi.  

Supporting leading DeFi protocols 

OKCoin Oracle supports on-chain pricing for Compound Finance, a permissionless money market service that allows users to earn interest on their crypto assets. As a protocol for tokenized lending, Compound provides users with interest on deposits for the lending and borrowing of assets.

“Having a reliable feed for on-chain price data is critical for DeFi growth and use of Compound. This effort from OKCoin is an important contribution to the decentralized finance ecosystem,” said Robert Leshner, Compound CEO. 

Compound developed an Open Price Feed System that uses an SDK to allow sources to sign key-value pairs, specifically a price feed, that interested users can publish to the blockchain. In line with the Open Price Feed standards, the OKCoin Oracle will be made accessible to be decoded.

The Open Oracle System provides the required trust and logic for an Ethereum price feed, splitting it into four parts: 

  • Off-chain price data where sources, called Reporters, sign price data with a private key. Reporters can be anyone and make the signed data publicly available.
  • Posting price data to Ethereum can be done by anyone with gas and a web3 connection
  • On-chain storage is supported by a Data Contract on Ethereum. Timestamped price data is decoded from signed data and stored under the Reporter’s public key, with the Data Contract holding the Reporter’s most recent price information.
  • Price views are made possible by the View Contract, which reads, parses, aggregates, and transforms data from the reported price feeds. These price feeds are selected by the on-chain application or user who requested the price data.

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