UNI should become an oracle token

Proposal Discussion
84

Virtually all aspects of the Augur oracle design were originally proposed by me. Yet, it was not possible without Joey. I continually pitched ideas most of which were bad ideas and I needed Joey to detect bad ideas. I came up with the formulas used and wrote proofs for why they were the minimum value transfers needed to make honest behavior rational. Jack did not participate in the system design (cant remember if literally zero or a little bit…he was following along closely). The system design was Joey and I, with a small amount of help from Vitalik via Skype.

Eventually I noticed Micah Zoltu on Augur forums and advocated to have him hired. At the time he was on par with me at decision theory / mechanism design, but better than me in every other measurable way. He replaced me and finished out the final tweaks of the system design.

85

Data is valuable! If you have it, use it! I do believe that Uniswap will continue be the leading DEX protocol for ETH/USD (stable coins) as time goes on. Yes, Chainlink is the best protocol for oracles as many would say, but in order to decentralize (minimize the chance of failure) the ETH/USD price, it would benefit from the addition of a different type and source of oracle. Ethereum, and therefore UNI, will benefit if this proposal is passed.

87

What about a “virtual token” of fixed amount (say, 1 billion or trillion TOKENS or whatever makes sense) that’s bound by a smart contract to the value of all the liquidity pools. The pool value can be calculated in any currency available on the exchange. ETH makes sense as the largest currency on the network, but any stablecoin could be good too. Then the price is a simple $POOL_VALUE/TOKEN_QTY and the total pool value is the token’s market cap. The token should not be tradable, only used as price reference within the protocol the liquidity pools exist in.

Additionally this could allow new features, like providing liquidity against multiple tokens with single asset with the “virtual token” serving as an intermediary in calculating the exchange rate.

If it’s not obvious by now, I’m very new to the crypto market, so disregard if this makes no sense. On the other hand, if this is the most brilliant simple idea no one else thought about before, glad to help :slight_smile: and feel free to take it wherever it can go.
Cheeeerss

89

Having another reliable oracle available is a “god send” for pretty much everybody in DeFi ecosystem. UNI seems to be a great position to make it happen. It sounds like a win-win for me

1 Like
90

so what is the status of this proposal? has it already been voted on or no? thanks in advance

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i am totally agree with all this proposal

2 Likes
92

I am also curious if this proposal has been voted on yet. Having UNI as a oracle token makes sense, especially of it increases trust of on chain oracles. Such as keep robust liquidity around spot.

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93

Alex makes some good points regarding UNI becoming an Oracle. Its time to bring this proposal back to light

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94

What can be done here based this tweet?

95

Great to see discussion resurected around this topic. Looks like a few things are still needed to figure out:

8/ It’s worth considering a fee to use Uniswap oracles.

While this would require some protocol changes, this could be implemented as a flat fee in ETH per call or a registration of a project’s contract on an array of approved oracle callers.

What would the complexity be of this type of protocol change, and does it require extensive testing/auditing?

Also need to figure what defines Uniswap as a “keeper of oracles” per the tweet thread:

(1) act as a “liquidity provider of last resort” By “liquidity provider of last resort,” I mean the DAO could create an automated strategy or appoint an LP manager to provide passive liquidity to pools that are important oracles and running low on liquidity.

(2) provide liquidity incentives to pools that are high value as price oracles

(3) provide data and research regarding oracle performance

(4) provide better documentation for best practices around oracle usage

It looks a “Keeper of Oracles” would function well if it did all four of these tasks. One of the best way’s for user’s to learn about Oracles is to actually use it for projects, and to have documention surrounding the process of usage.

I wonder if Point (1) and (2) could be related somehow. Such as providing longer period vested incentives, that are locked up as insurance incase point (1) happens during x amount of time. i.e. Incentive long period lock up, that pays out if oracle is successful, but accured potential payout is slashed if failing.

The latency of large and short time frames of the oracle could partically be mitigated by healthy liquidity depth around spot, so perhaps an active liquidity manager could be involved in this strategy.

Great to see this proposal have some fresh eyes and perspective from Alex Kroeger. Helps me see the potential.

2 Likes
96

Anyone interested in this topic should do a deep dive into how UMA’s priceless oracles work and how it processes liquidation. The system is already live and has proceeded many liquidations + resolved liquidation disputes.

Many of your will be surprised at how it can provide timely liquidations similar to Chainlinks but with the crypto-economical guarantees Vitalik suggests.

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Debatable for sure! Some valid points here

99

Very Nice View

Total Agree With You

100

Selamlar olsun arkadaşlar

101

nice post about coins ghjk

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I think that it’s a very good idea to make UNI an oracle token, but there should be some more considerations.