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
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
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