On Thursday, during the sharp downturn in the digital currency market, many active applications on the Ethereum network were shut down.
DeFi – Decentralized Finance hit hard in the wake of the recent downtrend, according to coindesk . Ethereum is the largest platform in the field, with many decentralized applications running.
On Thursday, as prices fell sharply, decentralized services tasked with delivering price information to decentralized financial plans failed to do so well. These services in the China Block Oracle are said to act as a bridge between the decentralized and decentralized world.
Oracle failed to deliver accurate pricing data to decentralized applications on the China Ethereum block. On the other hand, with increased Ethereum and crowded network transactions, network fees rose sharply, and traders were having trouble concentrating on decentralized exchanges.
By the year 2017, Ethereum was experiencing a similar problem, and the network became so crowded that it was unable to execute many project transactions. At that time, the market was on the upside, and a lot of activity in the cryptocurrency collecting game operating on Ethereum led to an unverified 30,000 transaction in the confirmation queue.
The Ethereum network was locked on Thursday due to 24 hour a sharp downturn in which the price of ether fell more than 30% in four hours.
Price-based Oracles, such as Quinkle or Maker’s V2, failed to perform well.
According to Tom Bean, CEO of bZx, several Oracle out of 21 Oracle Quinlinks were disabled during the early trading hours.
Stani Kulechov, founder and CEO of DeFi’s Aave platform, said one of Oracle’s oracles had a 20% price drop.
Oracles receive pricing data from in-or-out-of-chain sources (inside or outside the blockchain). The hustle and bustle of Ethereum’s network for transactions has made Oracle unable to do its job properly.
Financial transactions were also stacked on the Ethereum network, and traders had to pay a heavy fee for their transactions.
For example, users were unable to operate on a decentralized dYdX or Nuo Network lending platform. Both of these platforms work on the Ethereum network. These platforms were forced to change their pay structures to execute part of the telegraphed orders.
Santi Colcho said in this regard:
Network status affects everyone. People have to pay 160 gwei to keep prices up to date.
The biggest loser was undoubtedly Thursday’s MakerDAO. An infrastructure error has led to the loss of $ 4 million in investor collateral through an opportunistic ordering robot. In response, the Maker community voted yesterday (Friday) to reduce potential risks and change some of the platform structures.
Decentralized bZx exchanges also stopped trading orders and new loans until the situation stabilized. The money exchange recently decided to use Oracle Oracle because of a sudden attack on its lending sector that caused manipulation of its data. At the time of writing this report, all querying oracles are running smoothly.
BZx exchanger manager said:
The problem is that data providers cannot provide timely updates. It is possible to get the current rate but it is different from the instant rate.
ChinaLink’s co-founder Sergey Nazarov told coindesk that the unprecedented market conditions caused a temporary crowding of the main Ethernet network. He said network congestion has diminished, and all Quinlink Oracle servers on multiple platforms are now actively reporting and reporting.
Some decentralized financial programs were able to manage transactions without difficulty.
Decentralized exchanger Uniswap said on Twitter that its trading volume doubled on Thursday, reaching a record high of more than $ 53 million a day.
The Kyber Network also experienced the most prolific day in its history with over $ 30 million in daily trading volume.
Result? Decentralized financial management failed but did not succeed.
Kyle Samani, a prominent crypto activist, tweeted yesterday:
If we want crypto to become a global asset class, we need better DeFi infrastructure. Current status for this volume of orders is insufficient.
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