Fetch is NOW Live! (Liquid Loans is NEXT UP!)

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By Connor
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fetch oracle mainnet launch

Fetch Oracle is now LIVE!

And DeFi protocols across PulseChain will now have access to important off-chain data.

Fetch launching has significant implications for the launch schedule of Liquid Loans.

Keep reading to find out what this means.

Why Fetch is So Important for PulseChain

Fetch Oracle is a blockchain oracle which provides accurate and timely off-chain data to smart contracts in a truly-decentralized manner.

For example, decentralized leverage trading protocols need the price of BTC and other cryptocurrencies in order to determine liquidation levels via collateral ratio.

Without a decentralized oracle, that protocol might choose to rely on various entities to input that price feed data:

  1. A single person
  2. A central team
  3. An API call from a DEX like PLSX
  4. A centralized oracle like Chainlink

All of these options leave the door open for bad actors or failure by incompetence.

For example, if a single person might fall asleep, forget to input the data, fat finger the data entry, or purposefully report incorrect data for personal financial gain.

A central team or centralized oracle could have similar shortcomings. They could make errors in their process or intentionally input wrong data for the benefit of the small collective. 

If the oracle is controlled by an individual or a group of individuals, then they essentially control the protocol and remove its’ decentralization.

If the oracle is simply an API call from a DEX like PLSX, then many things can go wrong.

First, an API call from a single liquidity pool assumes that is the only price at a given time, which is not the case.

The price of an asset is determined by all of the liquidity pools at a given time. A single liquidity pool is vastly more susceptible to market manipulation and price volatility. 

Secondly, DEXs make upgrades and liquidity often migrates to various locations.

If a protocol hard-codes an API call from a particular liquidity pool, then they will no longer get accurate price feeds.

Fetch solves all of these issues. It is a decentralized network of data reporters who are positively and negatively rewarded through financial incentives to input accurate data.

To learn more about how Fetch Oracle works, click the link in the text.

Why Liquid Loans need Fetch

The Liquid Loans protocol needs Fetch to provide price feeds for PLS.

The price of PLS is critical information because it establishes the correct collateral ratio for the PLS:USDL value in the vaults.

If the provided price of PLS is too low, it would result in erroneous and unfair liquidations of vaults. 

If the provided price of PLS is too high, it would result in erroneously high collateral ratio. 

This could possibly tempt borrowers to take on even more debt, but if the price of PLS was corrected one data entry later, they would end up being liquidated. 

The Fetch system protects against incorrect price feeds via the dispute mechanism. 

If a price is deemed to be incorrect by the network of reporters, they can dispute the price, remove it from the system, and vote on the correct price expediently. 

Bad actors are strongly incentivized to input the correct data. If they input the incorrect data, not only will it not be accepted, they will also lose their Fetch token stake. 

Liquid Loans is Next Up!

The Fetch Oracle launch was the last step necessary to complete before the launch of Liquid Loans!

Liquid Loans has been working flawlessly for many months, and now the launch phase will begin.

It is officially your last chance to become an expert on the protocol!

Are you prepared?

Don’t find yourself behind the learning curve!

By far the best place to get all of your questions answered is our newly published “Start Here Page”

On this page, we will take you on a step-by-step journey to turn you into a bona-fide expert on the protocol.

Visit this page, and THRIVE with Liquid Loans.

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Disclaimer:Please note that nothing on this website constitutes financial advice. Whilst every effort has been made to ensure that the information provided on this website is accurate, individuals must not rely on this information to make a financial or investment decision. Before making any decision, we strongly recommend you consult a qualified professional who should take into account your specific investment objectives, financial situation and individual needs.

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Connor

Connor is a US-based digital marketer and writer. He has a diverse military and academic background, but developed a passion over the years for blockchain and DeFi because of their potential to provide censorship resistance and financial freedom. Connor is dedicated to educating and inspiring others in the space, and is an active member and investor in the Ethereum, Hex, and PulseChain communities.

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