Oracles and Data Feeds

Overview

Yei Finance utilizes a comprehensive price module system that integrates multiple oracle providers, including API3, Pyth, and Redstone. 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. A primary oracle is selected as the main data source, while additional oracles provide supplementary validation.

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Oracle Providers

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.

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.

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.