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Adrastia
@adrastia
1/9 🚀 Big News: Adrastia v4.2 is here, revolutionizing DeFi! We're introducing a groundbreaking approach to oracle design with the help of our new Credit Extension Oracles (CEOs). Get ready for a major shift in decentralized finance. 🧵 Continue reading
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Adrastia
@adrastia
2/9 🌟 What are Credit Extension Oracles (CEOs)? CEOs are specialized oracles designed for lending protocols. They introduce a split oracle system – one oracle for liquidation and another for credit extension (loan issuance), ensuring safer and more balanced financial decisions.
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Adrastia
@adrastia
3/9 📉 Scenario: Rapid Price Inflation. Traditional oracles struggle when collateral assets rapidly increase in value, leading to risky lending. CEOs mitigate this by requiring price stability before extending credit (issuing loans).
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Adrastia
@adrastia
4/9 📈 Scenario: Rapid Price Deflation. Singular oracles can allow excessive borrowing during borrowable asset value drops. CEOs counteract this, requiring downward price movements to hold, protecting against financial instability.
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Adrastia
@adrastia
5/9 🛠️ CEOs represent a proactive approach to DeFi lending. By dividing the roles of credit extension and liquidation, they provide a more nuanced, secure lending environment.
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