Last month, the Maker Foundation introduced The Road to Multi-Collateral Dai (MCD) Roadmap, which lists the critical milestones that must be achieved before MCD goes live. One milestone is the ratification of a set of governance proposals related to Oracles.
Oracles, collectively, are a mechanism to broadcast data from outside of the blockchain onto the blockchain. The Maker Protocol uses Oracles to obtain the real-time price of assets. This price is used to determine whether a CDP has enough collateral locked up.
This blog post introduces exciting changes to the Oracles infrastructure and Oracles governance. The aim of this post is to provide a stepping stone for MKR Governors that lays a foundation for discussing the Oracle proposals on the MakerDAO Governance Calls. The role of Oracles will be recapitulated and several new proposals will be put forward:A proposal will be submitted to add a set of DeFi partners as Feeds The proposal of an Oracle Team Mandate to create an Oracle Team role. The mandate will empower MKR Governance to appoint Oracle Team(s) to perform certain tasks on their behalf. In the spirit of gradual decentralization, it will be proposed that MKR Governors’ control of the Oracles infrastructure be formalized via an Oracle Governance Framework. The Maker Foundation will propose a new incentive structure for Oracles.
The Evolution of the Maker Oracles
In June 2017, with the introduction of Sai, the Maker Foundation released the first decentralized Oracles on the Ethereum mainnet. Since then, there has been widespread organic adoption of the Maker Oracles, fueling the growth of the emerging DeFi ecosystem. Today, the Maker Foundation is proud to announce the next generation of decentralized Oracles, Oracles V2. Utilizing the lessons learned over the past two years, Oracles V2 was built from the ground up to optimize for scalability, decentralization, resiliency, latency, and cost.