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How Do Decentralized Options Platforms Use Oracles to Calculate Option Strike Prices?

Oracles provide the underlying asset's spot price at expiration, which is compared to the fixed strike price to determine settlement value.
Greeks.Live20.11.25

How Do Decentralized Options Platforms Use Oracles to Calculate Option Strike Prices?

Decentralized options platforms typically do not use oracles to calculate the strike price itself, as the strike price is a fixed term set when the contract is created. Instead, oracles are used to provide the reliable spot price of the underlying asset at the time of expiration.

This price is compared to the fixed strike price to determine if the option is in-the-money (ITM) and what the final settlement value should be, triggering the automatic execution.

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