Comparing Ethereum Prices: Using Chainlink Oracle with Uniswap
As a cryptocurrency investor, keeping an eye on market prices is crucial to making informed decisions. One popular method for obtaining live prices for cryptocurrencies like Ethereum is to use a combination of data sources, including Chainlink oracles and Uniswap. However, when it comes to comparing the price deviation from Chainlink to the price obtained through traditional methods, such as fetching reserves from the TokenReserves API, there can be some discrepancies.
In this article, we will look at how to use Chainlink Oracle with Uniswap to compare Ethereum prices, specifically for the WETH (Wheat) token.
Prerequisites
- Node.js installed on your computer
- Chainlink API key and secret
Step 1: Set up the Chainlink oracle
To fetch data from the Chainlink oracle, such as the current Ethereum price using Uniswap, you first need to set up the Chainlink oracle for your token. Here’s how:
Install Chainlink SDKs
First, install the necessary Chainlink SDKs.
npm install @chainlink/sdk
Then create a new file called chainlink.js and add the following code:
const ChainLink = require('@chainlink/sdk');
const LINK_ID = '0x...'; // Your Chainlink oracle ID
const API_KEY = 'your-chainlink-api-key';
const SECRET = 'your-chainlink-secret';
const chainlink = new ChainLink({
id: LINK_ID,
apiKey: API_KEY,
secret: SECRET,
});
// Get the current Ethereum price using the Chainlink API
async function getPrice() {
const response = await chainlink.getAssetPrice('ethusd');
return response.price;
}
module.exports = { getPrice };
Step 2: Integrate Uniswap
To use Uniswap with the Chainlink oracle, you need to fetch reserves from the TokenReserves API.
First install the token-reserves package:
npm install token-reserves
Then create a new file called uniswap.js and add the following code:
const TokenReserves = require('token-reserves');
async function getReserves() {
const tokenReservesAPIUrl = '
const response = await TokenReserves.getReserves(tokenReservesAPIUrl);
return response;
}
module.exports = { getReserves };
Step 3: Compare prices using Chainlink Oracle with Uniswap
Now that you have implemented both Chainlink Oracle and Uniswap API, you can compare prices obtained from each method.
First, integrate Chainlink Oracle with Uniswap:
const chainlinkPrice = await getPrice(); // get current Ethereum price using Chainlink
const uniswapPrice = async () => {
const tokenReservesAPIUrl = '
const response = await TokenReserves.getReserves(tokenReservesAPIUrl);
return response.price;
};
module.exports = { chainlinkPrice, uniswapPrice };
Then use Chainlink Oracle with Uniswap to compare prices:
const { chainlinkPrice } = await getPrice(); // get the current Ethereum price using Chainlink
const uniswapPrice = await uniswapPrice(); // get reserves from TokenReserves API
if (chainlinkPrice !== uniswapPrice) {
console.log(Chainlink Oracle vs Uniswap: ${chainlinkPrice} vs ${uniswapPrice}});
}
In this example we compare the current Ethereum price obtained using Chainlink oracle and reserves obtained from TokenReserves API. The if statement checks if the two prices are not equal; if they are the same, it logs a message indicating that both methods returned the same price.
Conclusion
Comparing prices from different sources such as Chainlink oracles and Uniswap can provide valuable insights into market trends and help investors make more informed decisions.
