• Do it in a way that respects decentralization and is failure-resistant

<standings: 7,3,8,4,2,1,6,5> + digital signatures

• Participation incentives?
  • rewards, payments...

• Incentives for honest reporting?
  • penalties, collateral...

• Fee collection from dAPPs
• Nodes stake LINK
  • More LINK staked more jobs taken

staked LINK can be slashed

Chainlink

Chainlink Market

https://market.link/overview

• Does an oracle system need its own token?
  • Control over tokenomics, development funding etc
  • Integration/Interoperability with multiple blockchains
  • But also, put yourselves in an attacker's shoes:
    • ​Would you rather invest (supply as collateral) the oracle's token or ETH in order to attack the oracle network?

• Off-chain computation

• Verifiable randomness

• Cross-chain token wrapping

• Price feeds
• Random number generator
• Liquidations
• Rebalancing portfolios
• Rebase token supply adjustments
• Auto-compounding
• Limit orders
• Proof of Reserves
• Aggregation of data from multiple oracles
• Explicit user requests

• Centralized off-chain oracles
  • Synthetix, June 2019
    • fault in central oracle -> price x1000 -> exploit

• On-chain oracles
  • bZx, February 2020
    • Flash loan -> inflate sUSD price on Uniswap
    • deposit sUSD on bZx -> borrow x2 more than they should
    • abandon the now underwater loan
    • net profit 600K

Generally, "thin" liquidity in a pool makes it prone to epxloits