Ethereum Price Comparison: Using Chainlink Oracle with Uniswap
As a cryptocurrency investor, monitoring market prices is crucial to making informed decisions. One popular way to get real-time 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 the Chainlink price to the price obtained through traditional methods, such as retrieving reserves from the TokenReserves API, some differences may emerge.
This article 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: Configure Chainlink Oracle
To retrieve Chainlink oracle data, such as the current Ethereum price, on Uniswap, you must first configure a Chainlink oracle for your token. Here’s how:
Install Chainlink SDKs
First, install the required 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 token
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 retrieve your 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 and Uniswap
Now that both the Chainlink Oracle and Uniswap APIs are enabled, you can compare the prices obtained from each method.
First, integrate Chainlink Oracle with Uniswap:
const chainlinkPrice = await getPrice(); // Get the 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 Uniswap’s Chainlink Oracle 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 the Chainlink oracle and the reserves retrieved from the TokenReserves API. The “if” statement checks if the two prices are unequal; if they are the same, log a message indicating that both methods produced the same price.
Application
Comparing prices from different sources, such as Chainlink Oracle and Uniswap, can provide valuable insight into market trends and help traders make more informed decisions.