# How Does a PoR Oracle Differ from a Standard Price Oracle? ⎊ Path

**Published:** 2025-12-05
**Author:** Greeks.live
**Categories:** Path

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## 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 Difference between a Proof-of-Reserves and a Proof-of-Solvency Audit?](https://learn.greeks.live/path/what-is-the-difference-between-a-proof-of-reserves-and-a-proof-of-solvency-audit/)

- [Why Is a High-Gamma Option More Difficult to Hedge with a Static TWAP?](https://learn.greeks.live/path/why-is-a-high-gamma-option-more-difficult-to-hedge-with-a-static-twap/)

- [Why Is ‘Proof-of-Liabilities’ Also Necessary Alongside PoR?](https://learn.greeks.live/path/why-is-proof-of-liabilities-also-necessary-alongside-por/)

- [What Is the Concept of ‘Fractional Reserve’ in Crypto Custody?](https://learn.greeks.live/path/what-is-the-concept-of-fractional-reserve-in-crypto-custody/)

- [What Is the Primary Difference between a Static Hedge and a Dynamic Hedge?](https://learn.greeks.live/path/what-is-the-primary-difference-between-a-static-hedge-and-a-dynamic-hedge/)

- [What Is the Role of a “Proof-of-Reserve” Oracle?](https://learn.greeks.live/path/what-is-the-role-of-a-proof-of-reserve-oracle/)

- [How Does the High Gamma of Short-Dated Options Affect the Effectiveness of a Static Hedge?](https://learn.greeks.live/path/how-does-the-high-gamma-of-short-dated-options-affect-the-effectiveness-of-a-static-hedge/)

- [What Is the Risk of Fractional Reserve Stablecoins versus Purely Algorithmic Ones?](https://learn.greeks.live/path/what-is-the-risk-of-fractional-reserve-stablecoins-versus-purely-algorithmic-ones/)

## Glossar

### [Por Oracle](https://learn.greeks.live/area/por-oracle/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Mechanism ⎊ A Price Oracle, often abbreviated as "Por Oracle" in some contexts, functions as a critical mechanism for feeding real-world asset prices into blockchain-based smart contracts.

### [Standard Price Oracle](https://learn.greeks.live/area/standard-price-oracle/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Oracle ⎊ A Standard Price Oracle is a fundamental component of decentralized finance infrastructure, serving as the primary mechanism for securely relaying the spot price of an underlying asset from off-chain markets to on-chain smart contracts.

### [PoR](https://learn.greeks.live/area/por/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Mechanism ⎊ Proof-of-Reserve systems represent a cryptographic verification method designed to demonstrate that a centralized entity, typically a cryptocurrency exchange or custodian, holds sufficient reserves to cover its liabilities to users.

## Discover More

### [Can the 60/40 Rule Ever Result in a Higher Tax Burden than Standard Long-Term Capital Gains?](https://learn.greeks.live/path/can-the-60-40-rule-ever-result-in-a-higher-tax-burden-than-standard-long-term-capital-gains/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Can the 60/40 Rule Ever Result in a Higher Tax Burden than Standard Long-Term Capital Gains?](https://learn.greeks.live/wp-content/uploads/2025/10/Specular-Refraction-Across-a-Translucent-Digital-Asset-Interface-Analyzing-Volatility-Skew-Surfaces.webp)

Yes, because 40% is taxed at the higher ordinary income rate, even for long-term positions.

### [What Is the Formula for Calculating Initial Margin under a Standard Portfolio Margining Model?](https://learn.greeks.live/path/what-is-the-formula-for-calculating-initial-margin-under-a-standard-portfolio-margining-model/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Formula for Calculating Initial Margin under a Standard Portfolio Margining Model?](https://learn.greeks.live/wp-content/uploads/2025/10/Oscillating-Asset-States-Representing-Volatility-Skew-in-Decentralized-Finance-Derivative-Pricing.webp)

Initial margin is the largest potential loss calculated across predefined stress scenarios (VaR/SPAN method) plus risk add-ons.

### [How Does "Best Execution" Standard Apply to Institutional RFQ Trading?](https://learn.greeks.live/path/how-does-best-execution-standard-apply-to-institutional-rfq-trading/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does "Best Execution" Standard Apply to Institutional RFQ Trading?](https://learn.greeks.live/wp-content/uploads/2025/10/Futuristic-Aerospace-Asset-Integration-with-Decentralized-Ledger-Volatility-Surface-Projection.webp)

Mandates obtaining the most favorable result (price, cost, speed) for the client by selecting the best quote from the RFQ responses.

### [How Does Portfolio Margining Differ from Standard Margin Calculations?](https://learn.greeks.live/path/how-does-portfolio-margining-differ-from-standard-margin-calculations/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does Portfolio Margining Differ from Standard Margin Calculations?](https://learn.greeks.live/wp-content/uploads/2025/10/Futuristic-Decentralized-Finance-Propulsion-System-Representing-Algorithmic-Option-Hedging-Mechanisms.webp)

Standard margin is calculated per contract; portfolio margining is based on the net risk of the entire portfolio, recognizing offsets for a lower requirement.

### [What Is the Common Term for the Standard Volatility Skew in Equity Markets?](https://learn.greeks.live/path/what-is-the-common-term-for-the-standard-volatility-skew-in-equity-markets/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Common Term for the Standard Volatility Skew in Equity Markets?](https://learn.greeks.live/wp-content/uploads/2025/10/Crystalline-Volatility-Surface-Structure-Representing-Implied-Volatility-Skew-in-Decentralized-Derivatives-Markets.webp)

The standard volatility skew in equity markets is called the 'volatility smirk,' where OTM put options have higher implied volatility due to the market's fear of a crash.

### [How Does the "Mark Price" Used in Perpetual Futures Differ from a Standard Oracle Price Feed?](https://learn.greeks.live/path/how-does-the-mark-price-used-in-perpetual-futures-differ-from-a-standard-oracle-price-feed/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does the "Mark Price" Used in Perpetual Futures Differ from a Standard Oracle Price Feed?](https://learn.greeks.live/wp-content/uploads/2025/10/Quantum-Entanglement-Visualization-of-Cross-Margin-Liquidation-Breaching-Synthetic-Asset-Collateralization.webp)

Mark price is a smoothed, calculated price based on the oracle's spot price and contract funding rate TWAP, used for safe liquidations.

### [What Is the Standard Convention for Quoting a Risk Reversal?](https://learn.greeks.live/path/what-is-the-standard-convention-for-quoting-a-risk-reversal/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Standard Convention for Quoting a Risk Reversal?](https://learn.greeks.live/wp-content/uploads/2025/10/Concrete-Truss-Structure-Intersecting-Spherical-Boundaries-Within-Decentralized-Finance-Mechanism-Rendering.webp)

The difference in implied volatility between a call and a put of the same expiration and absolute delta.

### [How Does Portfolio Margining Differ from Standard Margining?](https://learn.greeks.live/path/how-does-portfolio-margining-differ-from-standard-margining/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does Portfolio Margining Differ from Standard Margining?](https://learn.greeks.live/wp-content/uploads/2025/10/Ergonomic-Cryptocurrency-Wallet-Interface-and-On-Chain-Derivative-Execution-Stylus-Mechanism.webp)

Standard sums individual contract risk; portfolio calculates the net risk of correlated positions, often leading to a lower margin.

### [What Is 'SPAN' Margin System and How Is It Different from a Standard Margin?](https://learn.greeks.live/path/what-is-span-margin-system-and-how-is-it-different-from-a-standard-margin/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is 'SPAN' Margin System and How Is It Different from a Standard Margin?](https://learn.greeks.live/wp-content/uploads/2025/10/Kinetic-Bifurcation-Mechanism-Abstract-Representation-of-Volatility-Skew-Hedging-Strategies.webp)

SPAN is a dynamic, risk-based system that calculates margin based on the maximum potential portfolio loss under various stress-test scenarios.

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