Oracles are a single point of failure and can make or break a DeFi protocol. They are reliable until a black swan event happens…

Unfortunately, crypto is a flock of black swans, so you better be prepared.

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Are we talking about this again?

There are a plethora of resources to understand the importance of oracles. We recommend this interview if you are interested.

But what’s the status quo of oracles? We know that no solution is perfect, but we must understand what’s going on in order to make informed decisions. We must be aware of the risks and act accordingly.

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“But we have Chainlink! A decentralized solution that works like a charm”

Chainlink

TL;DR: Chainlink is the most widely used solution in DeFi. It’s the most reliable and cheap, but incentives for nodes are centralized and non-scalable, making the whole system permissioned.

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