We are happy to announce the exciting new v4.0.0 upgrade and the launch of our innovative Historacle: the industry's first price manipulation prevention tool!
The v4.0.0 upgrade marks the launch of the Historacle, the first-ever Smart Oracle solution that brings business logic into on-chain price feeds to prevent manipulation.
The Historacle generates true, manipulation-proof price feeds for the safest, on-chain prices in Cosmos, and ultimately the #web3 industry.
The Historacle calculates prices by taking stamps of the time and volume weighted average prices (TVWAP) from multiple periods of time and price sources and creating a database of that price information while storing it on-chain. Concurrently, the Historacle uses customized algorithms based on asset-specific use cases and their risk profiles to manage prices used for borrowing, lending, collateralization, and liquidation. This product allows protocols to decide whether price action is accurate and it prevents both upward and downward price manipulation conducted through any selected trading venues. It ensures that Umee users experience the best safety measures to conduct lending and borrowing on the Umee blockchain. In the near future, the Historacle will be enabled on the Ojo blockchain to serve as a new data feed product for the overall Cosmos DeFi ecosystem.
The Historacle is important because, at the current stage of the Cosmos ecosystem, most of the assets are small-cap and vulnerable to price attacks. Sampling the price at JUST the current moment in time makes it vulnerable to market manipulation as showcased by Avraham Eisenberg in his Mango Market attack in October 2022, especially if the price is taken from a single price source. The Historacle is our answer to this.
With the Historacle, we not only step up with one of the best security-featured oracles to enhance DeFi safety but we also unlock use-cases for a wider range of tokens as listing candidates, such as Liquid Staking tokens (Stride + Quicksilver), Cosmos stablecoins ($IST and $USK), and more.
The Historacle is one of the many security features we have set to introduce in the coming months. Our goal is always to best serve the Cosmos ecosystem, and be the best lending protocol in the market. Stay tuned as this upgrade will allow us to list more IBC tokens in the coming weeks!
To stay up to date with our progress, check us out here:
We hope you join us on this journey to reshaping the global debt markets in Web3!
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