Oracle

Vesto Oracle System

Each derivative pool within the Vesto Protocol relies on an oracle system implemented through the VestoOracle interface. This oracle system serves as the foundation for price discovery, enabling accurate valuation of all assets within the protocol's ecosystem.

The VestoOracle continuously monitors and reports current market prices in USD for all collateral tokens used in derivative pools. These price feeds are essential for determining the precise value of derivative tokens, calculating appropriate collateralization requirements, and facilitating fair exchanges between different assets. The accuracy and reliability of this price data directly impacts the integrity of the entire Vesto ecosystem.

When creating derivative tokens, the oracle determines the exact amount of collateral tokens needed based on their current market value. Similarly, during redemption processes, the oracle calculates the precise amount of collateral tokens to return to users. For users entering a pool with a single asset, the oracle provides the necessary data to determine optimal conversion rates and swap paths through integrated DEXs like Uniswap.

The system performs deviation checks to identify and reject anomalous price movements that could indicate manipulation attempts. These security measures help protect users from potential exploits during extreme market conditions.

The governance of the oracle system falls under the protocol's administrative controls, with key parameters managed through role-based access control as seen in the contract structure. This governance model ensures that the community can respond to changing market conditions and improve the reliability of price feeds over time.