Finance moving onchain is directly and uniquely bullish for Chainlink adoption, happy to explain
1. Chainlink has expanded far beyond price oracles. Saying Chainlink is primarily a price oracle would be like analyzing Amazon as primarily a bookstore, or Microsoft as primarily a spreadsheet software company. Chainlink is the only all-in-one platform offering data, interoperability, compliance, privacy, and orchestration, all core requirements for the issuance and distribution of institutional tokenized assets:
nitter.net/ChainLinkGod/status/20…
2. As finance moves onchain, simply issuing a token on a blockchain is not sufficient. You need data oracles for NAV, corporate actions, reserve verification, etc. You need cross-chain oracles to transfer value and data between public and private chains (esp. as the cost of launching a chain drops to zero). You need compliance oracles for KYC/AML verification and various policy enforcements for regulated digital assets. You need privacy oracles to make data available onchain without revealing the underlying datasets/PII and while preserving data licensing restrictions. You need legacy-system oracles to enable institutions to access public/private chains through their existing enterprise systems and messaging standards. And you need orchestration oracles to enable institutions to establish complex business workflows that span multiple public/private chains, enterprise systems, and oracle services. Chainlink is the ONLY platform that offers all of these services, including packaged together into end-to-end solutions (e.g., DvP settlement, tokenized deposit workflows, etc.)
3. As for price oracles, as long as there are multiple trading/liquidity venues, multiple chains, and multiple CEXs, you need external price oracles that provide *full market coverage* by aggregating market data across all venues to raise manipulation costs. Otherwise, you introduce a significant attack vector. We have seen time and time again how using a single DEX pool as a price oracle has led to a dApp getting exploited/manipulated/rekt. There's no way to know whether a DEX/liquidity pool will keep consistent liquidity over time. As new DEX models appear and new trading venues launch, a pool that is liquid enough to use as an oracle today can be dangerously manipulable tomorrow as liquidity shifts. That is why Chainlink data has powered the vast majority of DeFi for the past 5+ years. Liquidity moving between venues becomes a non-issue, and builders can focus on their core business logic instead of building and maintaining price oracles
Watch
@Chainlink's presence at Swift's
@Sibos conference next week, it should be very enlightening about why some of the world's largest financial institutions and market infrastructures have adopted Chainlink infrastructure
Btw respect the takes you give on L1 chain commoditization/overvaluation, I may not agree with where capital will flow or what L1 assets will reprice to, but this thesis is obviously a blind spot and emotional topic for many market market participants
I'm not an oracle expert at all but isn't this actually bearish chainlink? I think finance moving onchain means you can use chain native prices from different pools & order books to construct price feeds as needed rather than using an external oracle like chainlink
Chainlink does other stuff like bridging, randomness oracles, etc... so maybe all that pops off. I'm really understudied on their business specifically but I think the more interesting conclusion at hand is if we can get enough economic activity onchain to remove the dependency on oracles