Skip to main contentCreda relies on oracles to price assets, calculate borrowing power, and trigger liquidations. Prices come from multiple sources and are validated before use to keep positions fair and safe.
What Oracles Do
- Provide on‑chain price data for each asset
- Drive key calculations: health factor, LTV limits, liquidation triggers
- Update frequently with guardrails to prevent bad data
How We Source And Validate Prices
- Multiple feeds: decentralized oracle networks plus on‑chain DEX data where appropriate
- Aggregation: median/weighted methods and smoothing to reduce noise
- Validation: deviation limits, freshness checks, and circuit‑breaker logic for abnormal moves
This reduces manipulation risk and avoids cascading liquidations from a single bad feed.
What It Means For You
- Collateral up, safer: Collateral price increases improve health factor and borrowing power
- Collateral down, riskier: Price drops reduce safety; monitor your health factor
- Borrowed asset up: Debt value rises in USD terms; health factor can fall
Plan for some oracle lag and smoothing during fast markets and set alerts on your positions.
Special Cases
- Stablecoins: Extra monitoring to detect and react to depegs
- LP/derivative tokens: Prices derived from underlying assets and pool math
- Emerging assets: Stricter limits and/or isolation until sufficient data quality is proven
Understanding oracle behavior helps you interpret health factor changes and act early during volatility.