How Do Oracles Handle Market Volatility to Ensure Data Integrity?

Oracles manage volatility by implementing dynamic update mechanisms. Instead of fixed time intervals, they often use a "deviation threshold" model.

This means the price feed only updates on-chain when the underlying asset's price moves by a predefined percentage (e.g. 0.5%) or a minimum time has passed (heartbeat).

This ensures the contract always has a relatively current price without incurring excessive gas costs from constant updates.