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Oracles serve the interests of the borrowers. If collateral value is sinking below the pre-defined liquidation threshold, then oracle allows the liquidation engine to withdraw the collateral assets.
SmartCredit.io integrates two oracles:
- Chainlink Oracle
- Uniswap V2 Oracle
Chainlink is the primary oracle and is used if the asset is available on Chainlink. Uniswap v2 Oracle is used in case the Chainlink data feeds are not yet available.
Oracles are used in case of loan liquidations—if the LTV (the loan value to collateral) sinks below a predefined threshold (see in "Collaterals section"), then oracles allow the liquidator to access the collateral assets. If the LTV is above a predefined threshold, then the oracles do not allow the liquidator to access the assets. So, oracles are the gatekeepers that protect the client’s assets.