GitBook: [#85] No subject

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Good Sanai
2022-12-12 06:37:46 +00:00
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@@ -18,6 +18,13 @@ Oracle-based trade execution mitigates such harmful candlestick wicks because th
Uniwhale uses [Pyth Network](https://pyth.network) for its oracle prices. Pyth Network is an oracle that publishes financial market data to multiple blockchains. Market data is contributed by over 70 [first-party publishers](https://pyth.network/publishers/), including some of the biggest exchanges and market making firms in the world. Each price feed publishes a [robust aggregate](https://docs.pyth.network/how-pyth-works/price-aggregation) of publisher prices that updates multiple times per second.
Pyth Network is different from many other oracles in that it uses ["on-demand" price update model](https://docs.pyth.network/consume-data/on-demand), whose advantages over the more traditional "push" model, among many, we like are: 
* Gas efficiency: **** On-chain prices are only updated when they are needed.
* High update frequency: **** Pyth Network price feeds update once per second, which is faster than the blocktime of most blockchains.
* Low latency: Every transaction can use a recent off-chain price, instead of relying on the last on-chain update pushed by the oracle itself.
* Reliable in volatile conditions: On-demand model does not fail to land price updates in volatile market conditions, because price updates are incorporated into the valuable transactions themselves (and therefore can compete for bandwidth).
### Latency
Any protocols dependent on oracles must account for the difference in latency between on-chain oracles and off-chain sources (e.g. centralized exchanges). No on-chain oracle can match the latency of an off-chain source due to the added overhead for consensus and security. Therefore, protocols must assume that there will be players who see price changes slightly before the protocol does. [Pyth Network](https://docs.pyth.network/consume-data/best-practices#latency) describes this situation as follows:
@@ -46,13 +53,21 @@ To mitigate this risk, Uniwhale Exchange is built on its own custom network of 8
Our custom price service network therefore provide for maximum resilience and decentralization.
As part of its product roadmap, we are also building a custom oracle aggregator based on multiple service providers (including Pyth) to determine trading prices.
By aggregating and filtering oracle prices across multiple service providers, our oracle aggregator can provide an oracle price that is even more reliable.
### Oracle network health
You can monitor the health of Pyth Network at [Dune](https://dune.com/cctdaniel/pyth-oracle).
## What the future holds
Our oracle infrastructure is built to provide manipulation-resistant prices for trading with focus on latency and price availability.
We, however, also recognize that our entire infrastructure, built around Pyth Network, relies on a single oracle protocol, however decentralized it may be.
As part of the product roadmap, we are building a custom oracle aggregator based on multiple protocols (including Pyth) to determine trading prices.
By aggregating and filtering prices across multiple oracle protocols, our oracle aggregator can provide a price that is even more reliable with multiple redundancies.
###