#Oracle System

Exolane uses oracles to provide fair, manipulation-resistant price feeds for all trading activity.

#Overview

All prices on Exolane come from Pyth Network, a high-fidelity oracle designed for DeFi.

#Why Pyth Network?

#Speed

• Updates every ~400ms
• Critical for trading accuracy
• Reflects real-time market conditions

#Accuracy

• Aggregates from 50+ data sources
• Includes major CEX and DEX data
• Weighted by quality and volume

#Decentralization

• Multiple independent publishers
• No single point of failure
• Cross-chain availability

#How Prices Are Used

#Position Valuation

Position Value = Size × Oracle Price
PnL = Size × (Current Price - Entry Price)

#Margin Calculation

Effective Margin = Collateral + Unrealized PnL
(Unrealized PnL uses oracle price)

#Order Execution

All orders settle at the oracle price
at the time of settlement

#Liquidation

Liquidation triggers when:
Position Value at Oracle Price → Margin < Maintenance

#Oracle Freshness

#Staleness Window: 40 Seconds

If the oracle hasn't been updated in 40 seconds, the system pauses:

#Why This Matters:

Protection against:

• Acting on outdated prices
• Exploitation during oracle downtime
• Price manipulation windows

Once oracle updates:

• All operations resume immediately
• Pending orders can settle

#Oracle Update Flow

1. Pyth publishes new price
        ↓
2. Keeper submits price to Exolane
        ↓
3. Oracle validates:
   - Timestamp is recent
   - Price is within bounds
   - Publisher signatures valid
        ↓
4. Price is accepted
        ↓
5. Pending orders settle at new price

#Price Display vs. Settlement

#What You See:

The UI shows the latest oracle price, updating in real-time.

#What You Get:

Orders settle at the oracle price at settlement time, not submission time.

#Why the Difference?

#Example:

You submit order at 12:00:00
  Displayed price: $100,000

Oracle updates at 12:00:02
  New price: $100,050

Your order settles at: $100,050

#Available Price Feeds

Each market is linked to a specific Pyth price feed at deployment.

#Oracle Security

#Multiple Publishers

Price is aggregated from multiple independent publishers, preventing single-source manipulation.

#Confidence Intervals

Pyth provides confidence intervals. Exolane uses the aggregate price when confidence is high.

#Timestamp Validation

Prices older than 40 seconds are rejected, preventing stale price attacks.

#On-Chain Verification

All price updates are verified on-chain with publisher signatures.

#Edge Cases

#Oracle Downtime

If Pyth experiences issues:

1. Oracle becomes stale after 40 seconds
2. All trading operations pause
3. No liquidations occur
4. Resume when fresh prices arrive

#Price Spikes

If a sudden price move occurs:

1. Price is validated against Pyth aggregate
2. If legitimate, trading continues normally
3. Positions may be liquidated at new price
4. Stop-losses may trigger

#Flash Crashes

Exolane's oracle-based settlement provides protection:

1. Orders settle at next oracle update
2. Brief wicks may not trigger liquidations
3. Price must persist through oracle update

#Oracle Fees

There are small oracle-related costs:

These are included in execution costs and are typically negligible.

#Transparency

All oracle prices are:

• Public — Viewable on-chain
• Verifiable — Check Pyth directly
• Historical — Past prices queryable

You can verify any settlement price after the fact.

#Oracle FAQ

#Q: Can the team manipulate prices?

No. Prices come from Pyth Network, an independent oracle. Exolane cannot modify price feeds.

#Q: What if Pyth goes down?

Trading pauses until fresh prices arrive. No trading or liquidations on stale prices.

#Q: Why didn't I get the price I saw?

Orders settle at next oracle price, not the displayed price. This prevents front-running.

#Q: Are prices the same as Binance/Coinbase?

Similar, but not identical. Pyth aggregates from multiple sources including those venues.

#Q: What's the maximum price lag?

40 seconds. After that, the system pauses until fresh data arrives.

#Summary

#Next Steps