Metronome
  • Metronome Synth
    • Introduction
    • Treasury Management
    • Protocol Owned Liquidity
      • External Liquidity
    • The Metronome Token ($MET)
    • Metronome Synth Protocol
      • Metronome Synth Features
      • Metronome Dashboard
      • Liquidations and Collateral Factors
      • Productive Collateral
      • Supported Assets
      • Synth Marketplace
      • DeFi Ecosystem
      • Metronome Synth Mintage and Deposit Caps
    • Risks
      • Liquidation
      • Black Swan
      • Oracle Disruptions
    • Metronome Revenue Model
    • Metronome Synth Glossary
    • Contracts
  • Smart Farming
    • Introduction
    • How Does it Work?
    • Competitive Advantages
    • Step-by-Step Guide
    • Loopage
    • Auto Repay
    • Risks
    • FAQ
  • Tokenomics
    • esMET
    • Governance
      • Lock MET
        • How to Lock MET
      • Early Unlock
        • How to Unlock MET
    • Trading Fee Discount
  • Contract Overview
    • Liquidation
    • Pool
    • Fees
    • Rewards
  • Metronome 2.0
    • Introduction
    • MET Tokenomics
    • Metronome DAO
      • Voting and Participation
      • Treasury Management
      • Metronome Improvement Proposal (MIP) Template
    • FAQ
    • Glossary
  • resources
    • Official Links
    • Brand Assets
    • Metronome 1.0
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  1. Metronome Synth
  2. Risks

Oracle Disruptions

Metronome Synth utilizes Chainlink as its blockchain oracle to monitor the underlying asset prices for synthetics and collaterals that are usable on the platform. Chainlink is widely regarded as the leader of oracles in DeFi.

Oracle disruption can occur, which has the potential to cause a number of potential problems for users such as the following:

  • Transactions failing on-chain when trying to mint or close a synthetic position

  • Asset pairs could fall out of peg at a 1:1 ratio

  • Potential liquidation of a user’s assets due to incorrect price information

Metronome additionally employs internal oracle parameters to minimize such disruptions. However, as is the case of any DeFi application using oracles, these risks cannot entirely be mitigated.

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Last updated 10 months ago

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