Price Oracle
The price oracle is used to fetch prices of collateral assets, which are then used to dictate whether borrows or liquidations are possible.
As a component crucial for protocol operation, Orbit's price oracle is initially set to be Pyth - a widely adapted price oracle amongst various ecosystems.
Pyth
Orbit Protocol utilities Pyth's oracle price feeds to pull token market prices, utilizing Pyth’s safety features to enhance the feed of token price movements and facilitate effective risk management.
Pyth works by incentivizing trading firms, exchanges, and other market participants to share real-world financial data directly on the blockchain. This data includes information from various markets.
By aggregating this data on-chain, Pyth provides more accurate pricing. Safeguarding against potential manipulation or inaccuracies in the market data.
We use Pyth for pricing for all other lending pools.
API3
API3 is a platform that provides decentralized APIs (dAPIs) which get their data directly from the source, eliminating the need for third-party intermediaries. This enhances the reliability and transparency of data feeds, making DeFi safer for everyone. API3 offers services like data feeds, a quantum mechanics-derived random number generator (QRNG), and on-demand APIs through their Airnode oracle technology.
We use API3 for our main ETH pool.
Redstone
RedStone is a modular oracle platform that provides tailored data feeds for decentralized applications (dApps). It supports all EVM L1s & L2s and beyond, making it deployable across multiple chains including EVMs, non-EVMs, rollups, and appchains.
RedStone specializes in yield-bearing collateral for lending markets, especially LSTs & LRTs, and consistently updates its modular pricing engine for accuracy and relevance. It supports versatile use cases with modular data consumption, offering three oracle models: RedStone Core (Pull), RedStone Classic (Push), and RedStone X (Zero-latency).
We use Redstone's Oracle for our USDB Orbit pool.
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