How Does a Price Feed from an Oracle Differ from the Exchange’s Last Traded Price?
The exchange's last traded price is the most recent price at which a trade occurred on that specific exchange. An oracle price feed, especially for decentralized protocols, is often an aggregated index price derived from multiple exchanges.
The oracle price is designed to be a more robust and manipulation-resistant representation of the global market price, making it a safer reference for critical functions like liquidations and funding rate calculations.
Glossar
Price Feed
Feed ⎊ A price feed is a continuous stream of real-time pricing data from various sources used to determine the fair value of an asset.
Oracle Price
Mechanism ⎊ Oracle Price represents the data point, derived from external sources, utilized within decentralized financial systems to trigger contract execution or valuation.
Last Traded Price
Definition ⎊ Last traded price refers to the most recent price at which a financial instrument, such as a cryptocurrency, option, or future, was bought or sold on an exchange.
Aggregated Index Price
Calculation ⎊ An Aggregated Index Price represents a synthesized market valuation derived from multiple constituent exchanges or data sources, commonly employed in cryptocurrency derivatives to establish a benchmark for settlement or valuation purposes.