The JDB Report is diving deep into crypto market structure to understand why things went haywire on October 10, causing $19 billion in liquidations of positions that should have been solvent. Read our summary here.
One of the big questions involves prices, value, and the “oracles” that connect real-world data to on-chain activities. Joshua Tobkin is co-founder and CEO of Supra, a blockchain oracle, helps explain the role of pricing in crypto markets.
Timecode:
0:00 - Joshua Tobkin, Supra introduction, sourcing data, and centralized exchanges versus information on decentralized venues
2:50 - Comparing sourcing and using data in crypto versus in TradFi markets
5:06 - In a trustless environment, do oracles become centralized points of risk?
6:14 - Resilience versus cost for multiple sources of data – and whether multiple sources diversify or concentrate data risk
11:21 - Could oracles be compromised, as LIBOR prices were once corrupted via collusion?
12:45 - During the Binance crash, prices detached from value. Can or should oracles provide context to prices? Josh discusses ideas for reference pricing of assets and detecting anomalies - and implications of pausing trading; circuit breakers in crypto?
19:02 - Automation versus ‘human in the loop’ and whether the industry could allow trades to be reversed; price-based feeds versus prediction feeds; building AI-agent pricing models.
