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This is integral to the functioning of smart contracts, which are inherently isolated and deterministic, and are unable to access or retrieve data from external environments without an intermediary. Oracles continue to advance, with debate raging about the best and most efficient method of data aggregation for oracles. Let’s explore two simple types—those using the “mean” and “median” methods—plus examine a few possibly superior solutions.
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Liquidity on secondary markets, including centralized exchanges (CEXs) and decentralized exchanges (DEXs), is crucial for enabling users to enter and exit staked positions without significant slippage. By concentrating liquidity in few sources, such as the stETH/ETH pool on Curve, leveraged LST holders risk substantial losses. Ensuring a broad liquidity distribution on- and off-chain is key for ensuring safety. Oracles were first conceptualized and developed between 2012 and 2015, growing in importance as Ethereum gained traction. They ensure blockchains can connect to existing legacy systems, data sources, and advanced calculations in a reliable and timely manner.
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