gm If oracles don’t scale, DeFi won’t. openOracle is our attempt at a safer, scalable on-chain price oracle. https://medium.com/@openOracleProject/introduction-to-openoracle-e2b4f60a3617
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openOracle is designed to be a permissionless, trust minimized oracle for the price between two erc20 tokens At its most basic level the oracle works by having a reporter submit both a limit bid and ask at the same price. Anyone can swap against these tokens minus a swap fee but must put up larger bids and asks at the same time and choose a new price. If nobody takes either order, it is evidence of a good price that can be used for settlement. Lots of the work is dealing with the tradeoffs inherent to the design. Like how there is no guarantee a report will be finalized by any specific time. And that the arbitrage profit to manipulate the oracle is influenced by a large oracle parameterization surface. With the right parameters, we can drive expected finalization time and arbitrage loss to manageable levels. In fact we hope the arbitrage loss can be so low that this design is undeniably better than centralized or m of n alternatives. The docs go into a lot of the details.
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