JEL Code
K0, K2, G2, G3, G5
Abstract
Financial markets have recently suffered from an increased interest of users of cryptocurrencies and decentralized finance solutions. Although Decentralized Finance (DeFi) has been designed based on smart contracts and leave out third-party intermediaries, these platforms sometimes require information from the outside world, such as exchange rates or prices. DeFi Oracles are the link solution between the on-chain world and the off-chain universe. This article describes the oracles, including taxonomy, governance and use cases. Thereafter, it considers their potential and, at the same time, addresses the possible risk that they present, which could impact the future DeFi space.
Recommended Citation
Suarez Barcia, Lucia
(2023)
"Decentralized Finance Oracles,"
Journal of New Finance: Vol. 3:
No.
1, Article 2.
DOI: 10.46671/2521-2486.1016
Available at:
https://jnf.ufm.edu/journal/vol3/iss1/2
Submission Date
1-17-2022
Approval Date
7-31-2023
Publication Date
8-27-2023