Oracle Manipulation

Price discovery is expensive.

Coupon Finance exclusively utilizes Chainlink oracles to ensure accurate and secure pricing data for all assets within the protocol. Chainlink's decentralized oracle network provides reliable, tamper-proof data which is crucial for the correct functioning of our markets.

Why oracles?

  1. Determining Market Value of Assets: Accurate asset pricing is crucial for the stability and integrity of our markets.

  2. Enforcing Over-collateralization Rules: Oracles help enforce the over-collateralization rules to ensure that the value of collateral remains higher than the loan value, thus safeguarding the interests of lenders.

  3. Liquidation Procedures: In scenarios where the value of a borrower's collateral declines to a certain level, accurate pricing data from oracles initiates the liquidation processes to protect lenders.

Managing Oracle Risks

Even with Chainlink's established reputation, it's crucial for users to understand the inherent risks associated with oracle-based data retrieval. We encourage users to remain informed and exercise due diligence when participating in our markets.

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