Introduction to Oracles

The oracle architecture in the Volta Market protocol is designed to provide accurate and reliable price data for various operations within the protocol. Here’s an overview of how it works:

• Central Oracle: The VaultPriceFeed contract serves as the central oracle system for the protocol, providing token prices for position sizing, liquidation checks, and swap calculations.

• Multiple Oracle Sources:

  • Primary Oracle: This is the preferred source for price data due to its reliability and decentralization.

  • Secondary Price Feeds: These can be configured as backup or complementary price sources.

  • AMM-based Pricing: Prices derived from AMM pools can be used, though they are typically less reliable.

• Prioritization: The system prioritizes the primary oracle. Secondary sources are only used when explicitly configured or when primary sources are unavailable.

• Flexible Configuration: The system allows for enabling or disabling specific oracles per token, providing optimal pricing flexibility.

• Price Validation and Adjustment: The VaultPriceFeed handles fetching token prices, validating and adjusting price data, and providing maximum and minimum prices with configurable spreads.

The primary oracle used for the protocol in the VaultPriceFeed is the Resilient Oracle System, which you can learn more about on the next page.