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This goes without saying, but price feeds are essential for many DeFi protocols. Accurate oracle data enables timely and secure services while preventing potential exploits. Where your data comes from and the way it’s delivered to dApps make a world of difference. Today, we’ll discuss different oracle delivery models and their limitations, with a focus on Pull versus Push Oracles. Read more below: Pull Oracles and Push Oracles There are two general types of oracle models available in Web3. The first is what we describe as “Push” oracles. The second is “Pull” or “On-Demand” oracles. Push Oracles update prices at specific intervals: this could be according to a time threshold (every 1m, 5m, 15m, 1h, 4h, etc) or every price deviation (0.5%, 1.0%, etc). Legacy oracles typically operate as Push Oracles. This introduces price discrepancies across different blockchains, which arbitrageurs can take advantage of. These discrepancies are unjustified: the same asset should have one price that is independent of the blockchain. Consider the table below: Because push oracles are set up differently on every chain, different blockchains will end up with different price update values. As a result, users of protocols using Push Oracles on multiple blockchains are exposed to cross-chain arbitrage. If the total costs related to bridging assets and/or borrowing assets and executing on transactions are below the price disparity, an arbitrage opportunity exists. This occurrence negatively affects protocol users. Pull, Don’t Push On the other hand, Pull Oracles or On-Demand Oracles only update prices on-chain when someone invokes the contract. Users can choose if and when they want to receive price updates, according to their needs. This makes the user experience highly gas efficient, as consumers only pay for oracle updates when they call the oracle to update the on-chain price. Another advantage is that Pull Oracles eliminate the possibility of cross-chain arbitrage opportunities. This is because Pull Oracles will return the same price updates to the target blockchains, no matter where the update request originated from. Examine the difference below: You will notice that all prices are the same, with 0 deviations across all chains. The #PythNetwork employs a Pull Oracle architecture, which means end users can leverage the on-demand aspect of receiving price updates, as well as price uniformity across all chains. The model is designed to enable protocols to benefit from much more competitive pricing while protecting end users from cross-chain arbitrage opportunities.