Alpha Finance Lab, a cross-chain DeFi platform, has announced the launch of Alpha Oracle Aggregator to pull price feeds from multiple sources. The new product will get data from the oracle providers Band Protocol and Chainlink. However, the platform plans to add more sources like API3 in the future.
The aggregator is designed to tackle scalability, flexibility and security issues plaguing the decentralized finance space. A data oracle is a platform that feeds data from external systems into the blockchain that are critical to the execution of smart contracts.
According to Tascha Punyaneramitdee, co-founder of Alpha Finance, the aggregation of the prices will increase the reliability of data while improving scalability and security. She added that the aggregator will make it difficult to manipulate price in the industry.
Data oracles are an important piece in operating decentralized finance protocols. Most DeFi apps usually depend on a single oracle, which is quite risky especially in events of data manipulation or platform downtime.
Alpha Oracle Aggregator to Improve Data Reliability
Some major losses in DeFi hacks in the past were due to oracle failure. However, the launch of the Alpha Oracle Aggregator will help prevent such occurrences by sourcing data from different oracles. This improves the consistency of data used by the platform.
Alpha Finance can easily launch on other chains or layer two networks as the aggregator continues to integrate data from Band Protocol and Chainlink, Punyaneramitdee noted. The data aggregator will help to add flexibility to several assets as well.
Per the official release, the Oracle Aggregator will enhance cross-chain interoperability, hence, eliminating the need for new projects to integrate with multiple data oracles on different blockchains.
The aggregator will also allow DeFi products on the Alpha ecosystem to aggregate data from multiple oracles for a single asset and also for different assets.