Umee is excited to create the first decentralized IBC oracle for the Cosmos ecosystem.
A price oracle is a tool which allows apps to accurately determine the price of an asset at any given time. Price oracles are a key component of every DeFi application since they help connect the off-chain and on-chain data and information, and provide protocols with the accurate price feeds they need to function as intended.
Currently there is a lack of a decentralized price oracle native to the Cosmos ecosystem. Up until now Cosmos builders do not have any robust decentralized oracle services available, and limited price information is generally concentrated in few Cosmos focused trading venues like Osmosis. This can make real time asset prices imprecise, and pose a threat if any of the limited price feeders are overwhelmed or breached due to concentrated risk. Inaccurate prices could create rippling effects for DeFi users in the Cosmos ecosystem. While unlikely, it’s a vulnerability nonetheless.
Orion is a decentralized price oracle built on the Umee blockchain to ensure that interchain DeFi apps are able to access real time data from both centralized and decentralized sources. Umee is spearheading the effort to build out the infrastructure for a decentralized price feeder that can be utilized by all existing and future builders in the Cosmos ecosystem. By building out this critical infrastructure, Umee will make the Cosmos ecosystem even safer for users and more attractive for builders and developers.