Oracle

In order to provide an effective liquidation mechanism, Piggy requires the most current BNB:USD price data. This price data is very important to the whole protocol. On the other hand, Piggy's core mechanisms are governance-free, so the protocol cannot rely on a single source of truth or a single oracle for data delivery to obtain the BNB:USD price – that would be extremely risky for the protocol.

For these reasons, Piggy has partnered with Chainlink on BSC mainnet, the most famous and stable on-chain oracle service. Chainlink is the most widely-used solution in the DeFi industry. More than 10+ Billion dollars on-chain value rely on their service. Chainlink is supported by a decentralized network of independent, Sybil-resistant oracle nodes. These nodes source data from multiple high-quality data aggregators. These features prevent the risk of single price data source.

Currently, only Chainlink fulfills the requirements of Piggy on BSC mainnet, so we only use their price feed. Although Chainlink's service is very stable, there is additional security logic in the case of failure of the Chainlink price feed. For example the protocol would be locked if an abnormalities on Chainlink are detected, such the feed breaking for a long time or posting a dramatic swing in the relevant. These measures prevent users from being wrongfully liquidated.

Moreover, once other robust oracles are available on BSC, we retain the ability to update our protocol and integrate them.