When an oracle misprices an asset, even for a single onchain update, billions in DeFi can be put at risk.
During the $LUNA collapse on May 12, 2022, Chainlink froze its price feed at $0.10 while the actual price fell to $0.01, a 10x mispricing. Some protocols kept using the frozen price, causing Venus to incur over $10M in bad debt.
Most oracle discussions center on latency (speed) and data source diversity. But the most critical factor is reliability.
The top three oracles:
1. Chainlink: Longest-running, with a few smaller hiccups.
2. Pyth: Nearly four years in production, but with incidents like wrongful Morpho liquidations from the cbETH feed.
3. RedStone: Almost four years in production with zero recorded mispricing incidents.
Only RedStone has a clean reliability record, a rare achievement in crypto. Protocols are starting to realize that reliability isn’t just nice to have; it’s a foundational requirement.
Disclosure: I’m an advisor to @redstone_defi.
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