Secure Price Feeds for DeFi Projects
A multilayer security strategy has made it possible for Muon to provide DeFi platforms with reliable price feeds.
Defi projects require price feeds for different purposes. For instance, lending platforms need them to determine the value of the collateral when they give a loan as well as when liquidating one. Sources for obtaining prices are varied, and some of the most important ones are off-chain. Oracles are needed to make such off-chain data available to on-chain smart contracts. Even the on-chain prices are vulnerable to price-manipulation attacks.
An oracle can spot such attacks and take necessary action to stop the feeding of manipulated prices to platforms by returning a "failed" response. That is why Defi projects, especially lending platforms, depend heavily on oracles for reliable price feeds.
To ensure the security of Muon Oracle Network, three security mechanisms are devised. These guarantee the generation of secure, tamper-resistant price feeds.
To get detailed technical information on how a sample price feed app has been developed using Muon, see here.