The USA-based cryptocurrency exchange Coinbase launches a new product named Coinbase Oracle to serve as a source of signed price data for BTC-USD and ETH-USD markets.
American cryptocurrency exchange Coinbase recently announced that it is launching a new product named Coinbase Oracle that will be a source of signed price data for BTC-USD and ETH-USD markets.
The data will be sourced from the Coinbase Pro exchange, and the price feed will be updated every 60 seconds. Moreover, Coinbase Oracle is secured by the same infrastructure that takes care of Coinbase’s customer assets.
According to the official announcement, the Coinbase Oracle is aimed to provide better security to the decentralized finance ecosystem. With this new platform, DeFi participants will no longer have to rely on ‘signed price data from less liquid exchanges or on-chain data from decentralized exchanges’, which are both vulnerable to attacks.
#DeFi has grown to more than $1B in assets pooled in a range of protocols. The Coinbase Price Oracle provides a critical service to the DeFi ecosystem: a trusted price feed that will make platforms safer, more reliable and unlock the next wave of adoption. https://t.co/ueUhRLX6r2
— Coinbase (@coinbase) April 23, 2020
Coinbase CEO Robert Leshner commented, “Coinbase Oracle will increase the security and decentralization of Compound’s price feed, which is mission-critical to the protocol and the ecosystem of applications built on top of Compound. We’re not alone — the rest of the DeFi will benefit from faster development, consistent data, and shared standards.”
Antonio Juliano, CEO of dYdX expressed his support for the Coinbase Oracle. He opined that the platform will have a huge impact on the DeFi ecosystem.
As he acknowledged that Coinbase is the ‘most trusted and secure institution in the space’, he also stressed on the fact that these prices can well be used to create more decentralized price oracles in the DeFi ecosystem.
Coinbase also explained the source of the price information in its blog post.
It stated, “We use the Coinbase Pro API as the source of the price data. Coinbase Pro is one of the most liquid crypto-exchanges in the world. There is already an ecosystem of oracles, market makers, and traders that rely on an accurate data feed provided by the Pro API. As such, Coinbase is making continuous investments in the quality of the API itself, as well as the market, as measured by liquidity.”