WHY'S FRINGE FINANCE'S NEW PRICE ORACLE MODEL REVOLUTIONARY.

22 Aug 2023, 21:19

WHY'S FRINGE FINANCE'S NEW PRICE ORACLE MODEL REVOLUTIONARY? With a cutting-edge price oracle model, meticulously designed to enhance security while maximizing flexibility in price source selection, we're changing the game. The core of this innovation lies in two pivotal components: price processing & price procurement. They both work synergistically to ensure robust and secure asset pricing on the platform. PRICE PROCESSING Price processing weaves different price sources and performs a series of operations on reported prices. This meticulous approach bolsters the system's protection against potential market manipulation. PRICE PROCUREMENT Price procurement governs how prices are acquired, considering aspects like user interactions and the utilization of price-updating bots. One pivotal feature? Prices can be sourced from Chainlink, Uniswap V3 and Pyth (zkSync). Post-acquisition, these prices undergo intricate processes—like applying a volatility cap—to determine the final price used for collateral assets. DIFFERENT PATHS Depending on factors such as the time since the last TWAP accumulator update, three distinct price processing paths are taken: full, partial, or non-TWAP. Each has its unique set of steps and purposes. Why all this complexity? To yield massive benefits. These steps curtail risks of price manipulation, lengthen the time-frame for attacks, and ultimately, make attacks less lucrative, deterring potential attackers. Further, Fringe's adaptability now permits the listing of fractionalized NFTs as collateral assets and broadens the spectrum of smaller-cap assets—even those without Chainlink feeds. An added boon? This model allows Fringe to extend its operations to EVM chains without Chainlink, offering a unique competitive edge. But what about liquidations? Our new model streamlines the curve, ensuring borrowers secure optimal prices for their liquidated collateral. A win-win that boosts platform adoption. Ok but isn't gas more expensive like this? While the model is revolutionary, it consumes more gas. To balance, Fringe strategically rolls out the model for specific assets based on demand, ensuring users get value without exorbitant fees. TLDR: Fringe Finance’s avant-garde price oracle model embodies a colossal leap in DeFi asset pricing. By fortifying against market manipulations, supporting diverse price oracles, and introducing myriad assets, it's genuinely a game-changer. Fringe Finance isn’t just about innovation—it’s about providing unparalleled security, utility, and value in the DeFi domain. Dive deeper into our mission and watch as we redefine DeFi for everyone!