Recently, the analytics company Nascent published a report where they announced a new approach to DeFi without oracles.
Everyone knows that the DeFi sector has all the necessary tools to fundamentally change the financial system, but is still in the early stages of development, facing a number of security problems. One such problem is the use of oracles, which can be hacked by fraudsters. In 2022, more than $3.8 billion was stolen in hacking attacks, mainly through exploits of DeFi protocols and bridges.
This problem could be solved by a new approach where protocols do not use oracles, but use different techniques such as price feeds from DEX exchanges and on-chain data to provide their own data.
The main advantages of this approach will be: increased security, reduced costs, since no commission will be charged for using oracles, and transparency of the protocols.
Let’s see if it will succeed in displacing traditional protocols from DeFi, but the topic of protocol security is very important and it’s time to change something to provide more guarantees for the safety of user funds.
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