Oracles and Data Feeds

Overview

Yei Finance employs a comprehensive price module system that integrates multiple oracle providers. API3 serves as the primary oracle, while Pyth and Redstone act as backup solutions. Oracles are fundamental to decentralized finance, supplying critical real-world data like asset market prices to the blockchain. Accurate and reliable data feeds are essential for fair collateral valuation, effective loan management, and timely liquidations.

Multi-Oracle Strategy

To minimize the risk of price manipulation in lending protocols, we implement a multi-oracle integration strategy. By leveraging multiple oracle sources, we ensure the continuity and reliability of price feeds while effectively preventing anomalies.

We choose API3 as our primary oracle for providing the main data source, while additional oracles offer supplementary validation.

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Oracle Providers

API3

API3 is a top-tier oracle service offering decentralized APIs (dAPIs) that source data directly from providers, eliminating third-party intermediaries. This direct approach enhances the reliability and transparency of data feeds, contributing to the overall safety of the DeFi ecosystem.

Pyth Network

Pyth Network is an oracle protocol that bridges market data providers with applications across various blockchains. With contributions from over 100 first-party publishers, including major exchanges and market makers, Pyth offers reliable market data. It secures over 350 protocols across more than 55 blockchains.

Redstone

Redstone provides a modular oracle service, delivering frequent, reliable, and diverse data feeds. Yei Finance utilizes Redstone’s Classic model, which pushes data into on-chain storage via a relayer under specified conditions, such as heartbeat intervals and deviation thresholds. RedStone USDT and USDC push feeds are used as primary oracle for these assets.