Skip to main content

How Does a PoR Oracle Differ from a Standard Price Oracle?

A standard price oracle reports the market trading price of an asset, which is a dynamic, market-driven value. A Proof-of-Reserve (PoR) oracle, conversely, reports a static, verifiable quantity: the amount of a specific asset held in reserve by an issuer.

The PoR oracle's function is to prove solvency and backing, not to provide a market price. It is a verification tool rather than a price discovery tool.

What Is the Role of a “Proof-of-Reserve” Oracle?
What Is the Difference between Static and Dynamic Delta Hedging?
How Does Proof-of-Reserves (PoR) Attempt to Address the Rehypothecation Concern?
How Does This Cryptographic Proof Mitigate the Risk of Fractional Reserve Banking in Crypto?