The centralized Oracle solutions of MakerDAO and Compound: Most of the DeFi projects being built right now are using DAI from Maker and Compound’s lending protocols which are built on centralized Oracles to receive the current price of the assets concerned. This is an issue because it creates a single point of failure that shouldn’t exist in a trust-less decentralized environment. It will be very interesting to see how the Open Oracle System initiative evolves in the coming months.
MakerDAO’s oracle is not centralized. It uses the same methodology that Augur uses to find a balanced approach to incorporating oracle data into its contracts. I wrote more about it here: