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Coinbase announced the launch of its Coinbase Price Oracle, which provides an important service to the DeFi ecosystem. Coinbase will offer a signed price feed via the Coinbase Pro API.
Through the Medium blog, Coinbase announced the launch of Coinbase Oracle, which is a signed price feed that anyone can publish on-chain. According to the post, starting from today anyone can make use of the company’s Oracle API to get signed price data for BTC/USD and also for ETH/USD.
Coinbase is leveraging on being one of the most trusted companies in the crypto space, whereby the DeFi ecosystem requires a safe environment that will reduce the systemic risks. Since Coinbase offers a highly reliable price feed, it is looking forward to unlocking the next wave of growth and also adoption both in the DeFi ecosystem and the crypto space at large.
Coinbase Price Oracle
According to the post, the prices will be updated each minute, to allow transparency in the Dapps that leverage the crypto finance advantages. After the launch, Coinbase said that anyone can publish the prices on-chain, assuring the customers that it is already signed by the company’s private key.
One notable advantage of using the new Coinbase service in the DeFi ecosystem is that using the Coinbase Price Oracle Public key, anyone can verify the authenticity of the data.
“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 the compound. We’re not alone- the rest of DeFi will benefit with faster development, consistent data, and shared standards.” Compound CEO, Robert Leshner said.
Coinbase is assuring the Price Oracle users that the system is secured using the same kind of infrastructure that is storing large amounts of crypto assets on behalf of the company. the company also assured the users that Oracle has implemented protections against the dreaded price manipulation that result in uncalled for sharp spikes on your chart.
The new Coinbase Oracle service will be valuable to the DeFi protocols that either offer services like lending, margin trading, collateral liquidations, and also derivatives. The blog post reads:
“A Coinbase price oracle will be largely impactful for the DeFi ecosystem – price oracles are used in every lending and derivatives protocol. Coinbase is uniquely positioned to provide oracle prices as they are the most trusted and secure institution in the space. These prices can be used as an input to help create more decentralized and secure price oracles for the ecosystem.”
Coinbase also said the play-load returned by the API is made to work well with the open Oracle, which is a set of ETH smart contracts. This will allow multiple publishers to submit prices from various sources to open oracle smart contracts.
In conclusion, the company promised to provide quality data that is reliable.