In the presentation below, Weißer Hase, Technical Lead at , presented on the advantages and challenges of designing a cross-chain oracle solution using Uniswap V3. DeFi Wonderland https://youtu.be/Ezd6h-AQFac?si=fmOTzvrLcvhCJPyn&embedable=true Below is a glossary of key concepts mentioned during Weißer’s talk, intended as a supplement to his video presentation. What Is Defi Wonderland? is a community of developers, researchers, investors, and other DeFi enthusiasts with the collective mission of fostering a decentralized and open financial landscape. The team works with prominent DeFi protocols such as , , and to push the boundaries of innovation in the DeFi space. DeFi Wonderland Optimism Reflexer Connext The Keep3r Network is a decentralized multi-chain job-matching protocol that connects projects that require external development services to individuals or teams, referred to as keepers, that can perform those services. It allows projects to outsource operations or computations like price feed monitoring, smart contract upgrades, liquidation assistance, etc., to external parties securely and efficiently. The Keep3r network Keepers must hold a minimum amount of KEEP tokens which are held as collateral and may be slashed if the individual acts maliciously. Each time keepers perform a job, they are rewarded in either ETH, tokens or the native token, $KP3R. Cross-Chain Oracles Cross-chain oracles are a type of oracle system that facilitates communication and data exchange between different blockchain networks. They serve as trusted intermediaries that foster interoperability by moving both data and assets between chains and monitoring the activities of various blockchains to report their conditions to other chains. Implementing secure cross-chain oracles can be a challenging task but projects like and , among others, are working on such solutions to meet the growing demand for interoperability as the DeFi ecosystem expands. Chainlink Band Protocol Liquidity Fragmentation Liquidity fragmentation refers to the phenomenon where the liquidity of a particular asset or trading pair is spread out across multiple decentralized exchanges (DEXs) or liquidity pools instead of being concentrated in a single platform. Liquidity fragmentation can reduce trading efficiency as it becomes more difficult to find a single liquidity pool with enough assets for substantial orders. Furthermore, it can lead to price discrepancies, interoperability challenges, and may expose DEXs to frontrunning, flash loan attacks, and price feed manipulation. Ticks A tick is a price level at which liquidity is provided, and each tick represents a specific price ratio between two assets in the trading pair. For example, if the trading pair is ETH/USDC, a tick might represent the price of 1 ETH in terms of USDC. By providing liquidity at specific tick levels, liquidity providers facilitate trades between the two assets within the defined price boundaries. Time Weighed Average Price (TWAP) TWAP is a price-averaging method that reduces price volatility by calculating the average price of an asset over a set period. This is preferable to the spot price which represents the immediate value of an asset in the market and is vulnerable to flash loan attacks or price feed manipulation techniques. TWAP is obtained by choosing a price point interval, e.g., 15s, summing the price points at those intervals, e.g., $20 at 0s, $22 at 15s, $18 at 30s, and then dividing that sum by the number of time points. For instance, the TWAP calculated from the examples would be $20. Learn more about DeFi Wonderland: Wonderland Website Wonderland GitHub Wonderland Twitter Weißer Hase Twitter The Blockchain Oracle Summit is the world’s only technical summit that dives deep into the use cases, limitations, and impacts of oracles on the wider blockchain ecosystem. Leading speakers worldwide gathered in Paris to share their work and experience building and using Oracle solutions. Article by . Michael Abiodun

Case Study: How To Achieve A Good On-Chain Solution For Price Feeds Post Merge

Exploring the Economic Security of On-Chain Oracles: Key Insights from Uniswap Labs

As the transmitters of truth on a blockchain, oracles are one of the most crucial aspects of technology’s next chapter. The goal of the Blockchain Oracle Summit is to bring builders, users and investors together, to accelerate growth in the oracle space. While scaling oracles to meet growing demand, careful attention needs to be paid to maintaining costs, decentralization, trust and more. Immutable blockchains need to be complemented by the most robust oracle networks. 

The Advantages and Challenges of Building a Decentralized Cross-Chain Oracle Solution Using Uniswap

About Author

Comments

TOPICS

THIS ARTICLE WAS FEATURED IN

Related Stories

Untitled Story

0VIX Launches Pre-mine, Introducing Unique Risk Management Feature

10 Shared Beliefs of a Bitcoin Maximalist

2018: A Review of the the First Year of the DApps: the Anecdotes You Know and Don’t Know (Part I)

57 Stories To Learn About Decentralized

A Post Pandemic Environment Will Be Ripe for The Adoption of Decentralized Stablecoins

0VIX Launches Pre-mine, Introducing Unique Risk Management Feature

10 Shared Beliefs of a Bitcoin Maximalist

2018: A Review of the the First Year of the DApps: the Anecdotes You Know and Don’t Know (Part I)

57 Stories To Learn About Decentralized

A Post Pandemic Environment Will Be Ripe for The Adoption of Decentralized Stablecoins

Light-Mode

Classic

Newspaper

Dark-Mode

Neon Noir

Minty

HN StartUps