How Often Should an Oracle Update for a High-Frequency Trading Derivative? ⎊ Path

How Often Should an Oracle Update for a High-Frequency Trading Derivative?

For true high-frequency trading, a decentralized oracle cannot provide the sub-second updates required due to blockchain latency and gas costs. However, for decentralized derivatives, the oracle should update as frequently as possible, typically every few seconds or when a small deviation threshold (e.g.

0.1%) is met. This ensures the price is sufficiently fresh for liquidations and fair trading, balancing speed with network cost.

What Is a “Deviation Threshold” and How Does It Prevent Stale Prices?

What Is a “Deviation Threshold” in the Context of Data Aggregation?

How Does a “Heartbeat” Relate to the Update Frequency of a Push Oracle?

What Is the Trade-off between a Low Threshold and Gas Costs?

How Does a ‘Deviation Threshold’ Affect a Data Feed Update?

What Is a “Deviation Threshold” in Oracle Price Feeds?

What Is a ‘Front-Running’ Attack in the Context of an Oracle Price Update?

How Do Different Blockchain Network Congestion Levels Impact Oracle Update Frequency?