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How Does a Smart Contract Determine the ‘Correct’ Price from Multiple Oracle Sources?

By aggregating data from multiple sources and calculating a median or volume-weighted average price (VWAP).
Greeks.Live06.11.25

How Does a Smart Contract Determine the ‘Correct’ Price from Multiple Oracle Sources?

A smart contract determines the correct price by utilizing a decentralized Oracle network (DON) that aggregates data from numerous independent sources. The contract's logic calculates a robust aggregate value, such as a median or volume-weighted average price (VWAP).

This method mitigates the impact of any single outlier or manipulated data point, establishing a more reliable and secure price feed.

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