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# Oracle Pools
- Author: Robert Kornacki
- Released: June 26 2020
- Topics: Oracles, DeFi, Incentives
Oracles are a key element in the growing sphere of DeFi with new use cases being discovered constantly. However as pointed out in the recent paper, [A First Look into DeFi Oracles](https://arxiv.org/abs/2005.04377), oracles schemes today lack transparency, accountability, and operational robustness.
Oracle pools are a new model which attempt to address said issues, while also providing further new capabilities. From guaranteeing the data posting schedule, incorporating game theoretic incentives + disincentives, built-in governance, potential dynamic entry, and building oracle datapoint hierarchies of confidence, there are many possibilities unlocked with this model.
The idea of oracle pools spawned during explorations into DeFi with the novel extended UTXO smart contract model. The ability to easily reference or spend tokens/data inside of other UTXOs provided a natural framework for developing this new type of oracle protocol. That said, this document is a high-level overview of oracle pools and thus should still be useful as a reference for those who wish to attempt implementing oracle pools in account-based systems (though some redesigning is likely required and not all of the potential benefits outlined in this document may be possible).
Oracle Pool Basics
In short, an oracle pool is comprised of a group of oracles that decide to source the same piece of data. This data may be a specific datapoint from a given provider, or be a pre-agreed upon accumulated datapoint from several sources which is folded down into a single value by each oracle before being posted onto the blockchain.