Oracle Infrastructure
How OLTA ensures reliable and manipulation-resistant pricing across all index products.
Overview
OLTA relies on a decentralized oracle architecture to aggregate price feeds from multiple sources. This design reduces the risk of manipulation, enhances redundancy, and ensures accurate valuation of all index components.
The system combines:
Decentralized oracles (e.g. Chainlink) for secure external pricing
DEX price aggregation from top decentralized exchanges
Fallback mechanisms based on median or TWAP models if discrepancies are detected, including TWAP pricing over a 4-hour window and medianized spot prices from centralized exchanges
Oracle Sources
OLTA prioritizes diverse and verifiable inputs:
Chainlink price feeds (primary source for high-cap tokens)
TWAP from DEXs like Uniswap, Balancer, or Curve
Medianized CEX spot prices via trusted oracle operators (for additional redundancy)
Smoothing and Validation Logic
To protect against outliers and short-term volatility, OLTA applies:
Time-Weighted Average Price (TWAP) over rolling windows (default: 4 hours)
Volume-Weighted Average Price (VWAP) for realistic execution levels
Median filters to remove extreme outliers from price snapshots
These smoothed prices are used in Net Asset Value (NAV) calculations, rebalancing logic, and portfolio redemption flows.
Oracle feeds are constantly monitored. If deviation thresholds are exceeded or data is unavailable, fallback procedures automatically trigger to preserve pricing integrity.
Resilience & Governance
Decentralized control: No single source dictates pricing
Oracle heartbeat checks: Feed freshness is monitored per block
Governance triggers: Emergency overrides or exclusions can be initiated via protocol governance in case of persistent oracle failure
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