What Is the Role of an Oracle in Determining the Value of an f-NFT? ⎊ Path

What Is the Role of an Oracle in Determining the Value of an f-NFT?

An oracle is essential for providing reliable, real-time, off-chain data (like market price or appraisal value) to the on-chain smart contract. For fractionalized NFTs, the oracle feeds the market-clearing price of the underlying NFT or the current trading price of the fractions.

This data is critical for calculating collateralization ratios, facilitating accurate lending, and executing liquidation mechanisms. A secure, decentralized oracle is vital for f-NFT financial products.

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