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 defeated.