Hey everyone, Ryan from Tellor here. Another approach could be to use the 3-pronged median approach, a structure that’s been live for 2.5 years with Ampleforth.
You can view the Ampleforth oracle’s track record here.
Benefits:
Using a 3-pronged median approach with API3, Tellor, and Pyth offers several benefits to the Aave protocol, including:
- Increased security: By using three different oracle providers, the risk of a single point of failure is reduced. This makes the oracle system more resilient to attacks and tampering.
- Decentralization: The oracle system becomes more decentralized with three oracles, reducing the risk of collusion and improving overall security.
- Accuracy: By taking the median of the responses from the three providers, the final price is more accurate and less prone to manipulation.
Adding Tellor to the mix would be a good fit here with its track record as an alternative to Chainlink, exemplified not only by Ampleforth, but Liquity as well, which uses Tellor as a fallback.
While the Aave community’s comfort and familiarity with Chainlink is well understood, felt this could be a good option for the community to consider while we’re on the topic.