Compound Gets Ready to Deploy Decentralized Oracle

The Compound protocol is set to introduce Open Price Feed - a decentralized oracle whose crypto market prices will allow the project's lending system to function.

The Open Price Feed is currently being tested on a variety of networks.

It has operated for almost two weeks on the Ethereum Kovan and Ropsten testnet for almost two weeks, and its price feeds have been available for 10 days on mainnet.

On Ropsten, a proposal to use the new price feed locked in on Aug. 6.Compound developers are calling the community to test the new system in order to integrate it into the protocol as quickly as possible.

The reporters will be exchanges, initially just Coinbase Pro, who will regularly sign price data with their public key.

In addition to Coinbase Pro, the system also uses the on-chain Uniswap V2 price feed as a fallback.

Called the anchor price, it acts as a sanity check on input from other exchanges.

If the price being reported deviates over 20% from a 30-60 minute time-weighted average of Uniswap prices, the off-chain data will be ignored.

Other price data providers are expected to be onboarded via governance by COMP token holders.

In June, Compound launched its protocol token, which gives holders the ability to participate in the protocol's decisions.