What Is Implied Volatility and Is It Typically Sourced from an Oracle?

Implied volatility (IV) is the market's expectation of the underlying asset's price fluctuation over a specific period. It is a key input for options pricing models like Black-Scholes.

IV is not typically sourced from a standard price oracle. Instead, it is calculated algorithmically by the options protocol based on the current market price of the option itself, or derived from a dedicated volatility oracle.