Skip to main content

How Does a Decentralized Oracle Provide the Index Price for a Perpetual Future?

A decentralized oracle network aggregates price data from multiple external centralized and decentralized exchanges. It calculates a robust, tamper-proof median or time-weighted average price (TWAP) and securely feeds this "index price" to the perpetual futures smart contract for use in margin calculation and liquidation.

Why Is the Median Often Preferred over the Average in Oracle Data Aggregation?
How Do Cross-Chain TWAP Oracles Attempt to Mitigate Manipulation Risks?
What Are the Trade-Offs between Using a Median Price versus an Average Price?
How Do Oracles Ensure the Data They Provide Is Accurate and Tamper-Proof?