Please help me to understand what is the economic motivation for price aggregators? As I understand the aggregator pays to price providers via transferAndCall. This payment is motivation for the providers. But what is motivation for aggregator as it pays for price? Anyone can use the aggregated price for free with latestRoundData. Is all aggregated price are sponsored by someone?
1 Answer
The price feed data the nodes provide are a shared resource, so that everyone can benefit from using the data, instead of everyone being charged to obtain it even though its already been brought on-chain. Each feed also has 'sponsors' who are generally users or protocols that heavily rely on the data and therefore opt in to contribute to their continued operation. It's this model that allows a normal end-user to consume the data for free, because other protocols that heavily rely on the data have already paid for it to come on-chain.
answered Jan 23, 2022 at 23:26
