Crypto News – On the Curve governance platform, an on-chain vote for Curve founder Michael Egorov was successful. The change of the ±1.5% safe limit connected to the Chainlink pricing in the Oracle CrvUSD is the subject of this proposal.
Curve Founder Egorov’s Oracle crvUSD Proposal Approved by the Community
The consistency and correctness of Oracle data, which is essential for supplying information to DeFi protocols regarding actual market pricing, is a major concern brought up by Egorov’s proposal. In spite of the fact that using spot prices obtained straight from the market could seem acceptable during periods of high volatility, the proposal contends that doing so could result in unjustified losses. As a result, Egorov’s proposal seeks to strike a balance between using Chainlink’s data source and preserving stability in the face of volatile market conditions.
What Will the Approved Proposal Provide?
The main idea of the approved proposal is to get rid of the ±1.5% safe limit that now exists for the Chainlink price within the Oracle CrvUSD system. The Chainlink data source will be immediately engaged under this adjustment if the Chainlink price significantly deviates from the internal Oracle EMA (Exponential Moving Average) by more than the predetermined limit. With the help of this system, large price swings that may otherwise cause users to suffer needless financial losses are protected.
The fact that this idea was adopted successfully demonstrates the value of decentralized governance in the DeFi sector. Voting on-chain is used to make decisions, and this demonstrates the community’s and stakeholders’ dedication to making DeFi protocols more reliable.
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