Price Oracles
In order to determine when to initiate Liquidations, the ADADAO Protocol requires real-time information regarding the market price of the collateral assets in ADADAO Vaults.
The Protocol's internal collateral values are derived through a decentralized Oracle infrastructure made up of a large number of unique nodes known as Oracle Feeds. ADAO voters select a collection of reliable Feeds to send price data to the system They also have control over the number of Feeds in the set.
The ADADAO Protocol takes price inputs through the Oracle Verification Module (OVM), rather than directly from the Oracles, to secure the system against an attacker attempting to obtain control of a majority of the Oracles. If an Oracle is hacked, the OVM, which acts as a layer of defence between the Oracles and the Protocol, delays the price for one hour, allowing Emergency Oracles or a ADADAO Governance vote to freeze it. ADAO holders make decisions about Emergency Oracles and the length of the price delay.
Last modified 1yr ago