The Monthly Truflation Oracle Update — March 2022
Keeping in line with our goal to provide the public and the DeFi community with the most current and accurate inflation rate based on market data, we are introducing recurrent monthly updates on the 15th of every month.
The updates may include, for example:
- Expanding datasets and introducing new data providers to make the Truflation data more robust and resilient.
- Changes to calculation methods, for example, changing the impact (relative importance, data weights) that each category has on the final index based on current consumer trends.
- Modifications to the algorithm, like the time the algorithm fetches data from the APIs or the calculations it performs on the raw data to get the final CPI.
- Adding new features and data requested by our builders and the community.
The upcoming March update will include:
- Two additional data sources for the Used Cars subcategory within the Transportation Category.
- An alternative data source for the New Cars subcategory.
The Basket Coverage
New cars haven’t been previously covered by our alternative market data so introducing the new dataset will increase our coverage of the government’s CPI index from 55.53% to 59.34%.
In terms of relative importance, the Transportation Category constitutes 17.06% of the total CPI basket, of which:
- New Cars — 3.81%
- Used Cars — 3.43%
Data sources number
Overall, after the March update, the transportation category of our CPI index will have a total of 6 different data sources.
The Truflation Index Change
The impact of these changes on the Truflation index will be minimal at a 0.06% increase for the Truflation Index expressed as the 12-month % change.
How we do it
Before any update, we find and negotiate with data providers to get legal access to their data.
Our data scientists look at the categories, items, raw data consistency, missing data, missing dates, repetitions, etc.
We run quality control and measure the impact that the data has on the current Truflation index to inform our community.
Once satisfied with the APIs quality, we enable the Truflation algorithm to query the additional databases to calculate the Truflation Index and share it as a blockchain oracle through Chainlink.