Uniswap Should Be Oracle for Fiat Currencies too: Vitalik Buterin

Uniswap Should Be Oracle for Fiat Currencies too: Vitalik Buterin

By Jack Pearson - min read
Uniswap label on keyboard

The Ethereum creator made suggestions for the development of Uniswap in a forum post on the Uniswap Governance Forum.

  • Buterin proposed that Uniswap should become an oracle token for fiat currency – oracles are used for transmitting and sharing price data and used to calculate liquidation prices and prevent 51% attacks
  • He also outlined some of the current problems facing the decentralised exchange platform, including that UNI can currently be used as an oracle for ERC-20 coins, but cannot do so for outside currencies, such as the US dollar – this is a problem, he says, as it means UNI must heavily rely on stablecoins such as USDC to continue to operate
  • Buterin ended his post by saying that Uniswap could be part of Layer 2 solutions for the Ethereum network and the DeFi space more broadly – something that could be seen as an endorsement by the Ethereum creator for the DEX project
  • Uniswap is currently trading for $42.27, having seen a price increase of 41.3% in the last 30 days

Sources Cited

https://gov.uniswap.org/t/uni-should-become-an-oracle-token/11988