Oracle

What Is a Crypto Oracle?

A crypto oracle is a service that provides external price data to smart contracts on the blockchain. Oracles are essential for decentralized exchanges (DEXs) to ensure that on-chain trading and settlement reflect real-world asset prices.

How Our Oracle System Works

• USDC Price:
  The price of USDC is hardcoded to always be 1 USD. This means all calculations and settlements involving USDC assume a fixed value, ensuring stability for USD-pegged trades.

• NVT (Neony Vault) Price:
  The price is dynamically calculated based on current balance and position of Vault

• Other Tokens:
  All other token prices are provided by a heartbeat oracle. This oracle pushes the latest price data to the blockchain at 1-second intervals.

  INFO

  • The heartbeat oracle is a trusted off-chain service that fetches prices from reliable sources and submits them to the blockchain.
  • This ensures that the DEX always has up-to-date and accurate price information for all supported tokens.

Why Use a Heartbeat Oracle?

• High Frequency:
  By updating every second, the oracle minimizes price lag and reduces the risk of manipulation or stale data.
• Reliability:
  The oracle aggregates prices from multiple sources, providing robust and tamper-resistant data.
• Transparency:
  All price updates are recorded on-chain, allowing anyone to verify the current and historical prices used by the DEX.

Example: Price Feeds

Token	Price Source	Update Frequency
USDC	Hardcoded (1 USD)	N/A
BTC	Heartbeat Oracle	1 second
ETH	Heartbeat Oracle	1 second
...	Heartbeat Oracle	1 second

How Prices Are Used

• Spot and Perpetual Trading:
  The DEX uses the latest on-chain price for each token to calculate trade execution, margin requirements, liquidations, and funding rates.
• Stability for USDC:
  By hardcoding USDC to 1 USD, the system ensures a stable base for all USD-denominated trades and settlements.

Security and Trust

TIP

• The heartbeat oracle is operated by a trusted party and is monitored for uptime and accuracy.
• All price updates are transparent and auditable on-chain.
• In the event of an oracle failure, trading may be paused to protect users.

Summary

• USDC is always valued at 1 USD.
• All other tokens use a high-frequency heartbeat oracle for price data.
• This design ensures accurate, up-to-date, and reliable pricing for all DEX operations.