Chainlink Oracles integration into Mirror

Hi Mirror community,

For the sake of increasing the security and redundancy of the Mirror design, the Chainlink Labs team has reached out to the Terra community and will submit a proposal for the integration of Chainlink Price Feeds into Mirror Protocol.

Please note that this is the initial step for Chainlink to get involved more deeply into the greater Terra ecosystem, and become a trusted alternative to our existing set of Oracles currently reporting on Mirror synth, Anchor bAssets and Terra native assets prices, and I’m personally looking forward to the possibilities such an integration entails.

From a Mirror user perspective, this proposal - if passed - will have the following immediate effects:

  • Ability to use oracle contracts built with Chainlink when whitelisting mAssets parameters
  • Reduce the number of whitelisted mAssets stuck at the parameter proposal step due to a missing a functional oracle

Chainlink feeds are already live on the Terra testnet and will be deployed on mainnet after the proposal passes if the community supports the initiative. This will allow anyone to submit a parameters whitelisting proposal to replace the existing oracle feeds with the Chainlink version.

Subsequent Chainlink Price Feeds will be built according to the list of mAssets requested by the Mirror community, and I’m happy to help design a framework to ensure there are incentives for price feeds to be built as soon as a mAsset gets whitelisted via governance.

Below is some more information, courtesy of the Chainlink Labs team, regarding the specifics of Chainlink Price Feeds, please take the time to evaluate if this is a net positive for Mirror and the Terra ecosystem as a whole and feel free to share your feedback in this thread. Barring any major concern from the community, the proposal should be live within a few days:

“Hi Mirror community - we are excited to present our proposal to you. We strongly believe that Chainlink Price Feeds will provide significant benefits to the protocol, including but not limited to:

  • High-Quality Data: Data is sourced from numerous premium data aggregators, generating price data that’s aggregated from hundreds of exchanges, weighted by volume, and cleaned of outliers to achieve continuous full market coverage for the Mirror Protocol to consume.
  • Secure Node Operators: Price feeds are secured by independent and Sybil-resistant oracles run by leading enterprises, data providers, and DevOps teams with a long history of reliability, providing Mirror access to data even during extreme market volatility and network congestion.
  • Decentralized Network: Price Feeds are decentralized at the data source, oracle node, and oracle network levels, providing strong protections against downtime and tampering by either data providers or oracle nodes, increasing user trust in the security of the Mirror platform.

Chainlink Price Feeds have been operational on Ethereum mainnet for over two years and currently secures tens of billions of dollars in value within the DeFi and CeFi ecosystems. Hundreds of projects on Ethereum mainnet rely on Chainlink feeds today, including Aave, Compound, Synthetix, and more. Additionally, Chainlink oracles are natively blockchain agnostic , supporting a wide range of blockchains without any cross-dependencies or central points of failure like relayers, increasing reliability. We are incredibly thrilled that Terra is next and are actively working to ensure the integration meets our high standards of reliability and tamper-resistance.

In terms of how Chainlink Price Feeds are constructed, the network’s architecture involves multiple layers of aggregation & decentralization, resulting in a significantly increased level of tamper-resistance and security. In particular:

  • Data Source Aggregation: Each of the data sources used in Chainlink Price Feeds are premium data aggregators that fetch market data from across centralized and decentralized exchanges, taking into account differences in volume, liquidity, time, and filtering outliers to achieve full market coverage.
  • Node Operators Aggregation: Each Chainlink oracle node in a Price Feed fetches data from multiple independent data aggregators and takes the median value, mitigating outliers and API downtime. Chainlink nodes also natively support password-protected APIs, ensuring the highest quality sources are used.
  • Oracle Network Aggregation: Each Chainlink Price Feed aggregates the responses from numerous oracle nodes and takes the median value, mitigating any single point of failure. Updates are published on-chain when the off-chain price moves a predefined percentage from the previous update or a specific period of time has passed since the last update. ( example ETH/USD feed )

This decentralized design has allowed Chainlinked projects to mitigate critical oracle failures such as flash crash outliers and data manipulation attacks like flash loans. Most importantly, Chainlink feeds have protected protocols against false liquidations, under-collateralization, and unnecessary periods of extended downtime.

Chainlink Labs works with communities to help them build systems that provide increased data security for deterministic back-end solutions for the Chainlink network. With hundreds of Chainlink Price Feeds already live across a number of blockchain networks, we have the experience and capability of rapidly coordinating the launch of new feeds within a short period of time as requested by the Mirror community. Thank you for your consideration and we look forward to supporting you from here!”

For more resources:

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Welcome to Mirror!
Could you guys develop price feed for more diversified asset class? such as stocks from HKEX, South Korea Exchange etc, and commodities such as oil, wheat etc.

Hopefully this will allow more mAssets for Mirror Finance, whether it is commodities, cryptocurrencies or even forex pairs (think USD/TRY, so that you will gain when it appreciates)

This proposal will be vote in the governance? When?

Chainlink Labs work with many data providers to source all types of data. All of our price feeds are built based on user requests. We would be happy to look at specific price feed requests and evaluate if it meets our requirements for creating a secure, highly-reliable feed.

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It should be noted this poll needs in excess of 7.56m MIR to hit quorum (the UI is buggy). Currently there is a little over 5.65m MIR that has voted. It will fail if quorum isn’t reached.