Balancer Protocol
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Balancer Protocol

What Kind of Oracles Do We Need for DeFi Derivatives?

  1. Flashloan-proof.
  2. Low-latency. Following Vitalik’s phrasing, derivatives belong to the category of not-okay-with-high-latency use cases.
  3. Non-maintenance. Since blockchain is a state machine without the ability to take actions proactively, any maintenance job (e.g. regularly recording the TWAP values) would be a pain in the neck.
  4. Tradable price. Price is better tradable and backed with sufficient liquidity.
  1. Flashloan-proof: users can avoid flashloan manipulation with the Balancer V2 oracle prices.
  2. Low-latency: you can either get the price of the current block or the price snapshot at the beginning of the last block with swaps. In other words, you can get the most up-to-date prices that are not subject to flashloan manipulations.
  3. Non-maintenance: you get the prices as you go and no prerequisite job is necessary.
  4. Tradable price: The prices you get from Balancer V2 oracle are the real trading prices in the pools, which means you could buy/sell at these prices with Balancer. (You do need to pay attention to the pool’s TVL for slippage management).

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Deri Protocol

Deri Protocol

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Deri Protocol = (Perpetual Futures + Everlasting Options) x Decentralized.