# Advantages of this approach

Existing oracle alternatives for getting a price quickly are typically m of n approaches like Chainlink or Pyth. Slower oracle designs that rely on escalation and forking in the style of Augur are not covered because they are not designed for getting prices quickly, and to the extent financial engineering is used to overcome the latency issue you are stuck with the cost of capital internally over the finalization time of the oracle.\
\
With respect to m of n oracles, the openOracle approach has several key advantages:\
\
1\. Security\
\
openOracle does not rely on trusting m of n whitelisted and kyc'd participants. The trust model is based on 1 of n participants in the oracle network acting in their own self interest. Our design is a proposed solution to the long-lived oracle problem. It can scale to any amount of money at stake. Dishonest participants can lose an uncapped amount of money, and the best of the network accumulate the most resources.\
\
2\. Speed\
\
In m of n oracles like Pyth and Chainlink, the price is only valid once there are m signers. This means they can only be as fast as the slowest of the m signers. In openOracle, our reporting speed is based on the fastest of all n participants, which is a permissionless set. The fastest network participants accumulate the most resources and slow reporters lose money. In m of n setups, there are not brutal incentives punishing latency, and there is a fundamental constraint on speed because of the m signers requirement + consensus latency overhead of aggregating the signatures. While the openOracle design includes some latency via the settlementTime, we can drive this arbitrarily low as the competition on the  network gets better.\
\
3\. Accuracy and swap execution\
\
By having thousandths of a basis point precision in our internal oracle swap fee parameters and taking zero protocol fees by force, we can have arbitrarily high precision on our pricing. This immediately makes us the most accurate price source on chain. Chainlink for example has a 0.15% deviation threshold on ETH-USD on Base, meaning the price can be up to 0.15% off continuously.\
\
Pyth includes an abstract concept of spread in their confidence reporting which applications are advised to account for in execution costs. Pyth confidence tends to be well in excess of the true lowest spread on spot CEX order books (for example with ETH price of $3714 currently there is confidence of $1.5, or about 0.04%). Pyth confidence depends in part on how much the quoters agree with each other so they are fundamentally restricted by the m of n design and latency mismatch.\
\
We are already operating with 0.02% price update thresholds (swap fee of 0.02%) in production and continue to work towards pushing that down. This level of pricing accuracy and the inherent swap function in the oracle's life cycle also lets us offer swaps cheaper than many places on-chain like Uniswap or Aerodrome. The concentrated liquidity Aerodrome WETH/USDC pool on Base uses a dynamic fee but its lowest possible fee is 0.038%, and we are doing swaps in production today for cheaper than that because of our almost arbitrary precision. We are more comparable to Cowswap in terms of swap execution cost while being faster because they have \~30 second auction frequencies while your swap can be fulfilled in under a second (you get tokens back) on openOracle.\
\
