1) Oracles in the real world
Conversation
Sorry SBF, but I'm going to have to disagree with you here on a core point
You NEVER want your SC to rely on a single exchange as its price oracle, it doesn't offer enough market coverage and is vulnerable to manipulation
Even a simple median across exchanges isn't enough
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Er I agree with you on that -- it's much better to do something like what FTX does (take an index and bound all data points at 30bps away from the median).
The "it all comes down to an API feed" really meant "some function of some set of API feeds"
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Taking a simple median across exchanges doesn't really provide an adequate market coverage either though because it doesn't take into account volume consolidation or new exchanges popping up
It's more nuanced than just you need to trust the APIs, it's about data quality
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agreed on the data quality. Volume is tricky though -- it's one of the most-faked pieces of data, and just as importantly often it's dominated by one or two exchanges which gets close to single-point-of-failure issues.
Yeah agreed volume isn't the end-all be-all metric of market data quality, but it does show how the Oracle delivery problem is a different issue than the data quality problem
Trying to solve both the same time is incredibly difficult
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