Uniswap’s native UNI token can greatly enhance its utility by becoming a pricing oracle for stablecoins, according to Ethereum co-founder Vitalik Buterin.
In a proposal submitted to Uniswap’s governance platform, Buterin said that a successful decentralized finance, or DeFi, ecosystem relies on a “highly secure pricing oracle,” noting that algorithmic stablecoins, synthetic assets and collateralized loans all depend on oracles. The problem, however, is that Uniswap currently doesn’t provide an oracle for the price of ERC-20 tokens in the truest sense.