How Do Decentralized Oracles Play a Role in Determining the Target Price?
Decentralized oracles play a crucial role in determining the target price of a rebase token. Oracles are services that provide external data to smart contracts.
In the case of rebase tokens, oracles are used to provide the smart contract with the real-world price of the asset that the token is pegged to. This information is then used to determine whether a positive or negative rebase is needed.
The use of decentralized oracles is important to ensure that the price data is accurate and tamper-proof.
Glossar
Target
Precision ⎊ A target, within cryptocurrency derivatives and financial markets, denotes a predetermined price level or state serving as a focal point for trading strategies and risk management protocols.
Decentralized Oracles
Attestation ⎊ Decentralized oracles, within cryptocurrency and derivatives, represent a pivotal shift in data sourcing, moving away from centralized authorities to verifiable, distributed networks.