Oracles
How different price feeds are provided for use within Solera
Liquidations rely on price feed information provided by Oracles. To ensure proper liquidations and avoid any bad debt, Solera relies on three major oracle sources:
Currently the following oracles are being used:
Oracle providers for each asset and vault are listed within the application. Solera plans to onboard more providers and custom feeds as needed.
Certain markets are configured with custom oracles feeds depending on the underlying asset and anticipated leverage in borrowing strategies. Oracle configuration is determined by the market/vault curator. A few common oracle configurations are listed below:
Hardcoded
Value of collateral asset is set to a fixed price
Market Price
Value of collateral asset is calculated using an average of available trading venues on DEX and CEXs,
Redemption Rate / NAV
Value of collateral asset is determined by the underling Net Asset Value (NAV) of it's redeemable value, not market price
Time Weighted Average Price (TWAP)
Value of collateral asset is calculated using its average value over a specific period (eg. trailing 7-day average)
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