Continuum Logocontinuum
Technical

What Is Oracle?

A service that brings off-chain data (like prices) onto the blockchain.

Definition

Oracles are trusted data feeds that connect blockchains to external information. For synthetic assets, oracles provide the price data that determines token values. Without oracles, smart contracts cannot know real-world asset prices.

How It Works

Oracle networks (like Pyth or Chainlink) aggregate price data from multiple sources, validate it through consensus, and publish it on-chain. Protocols read this data to calculate synthetic asset values.

In Continuum

Continuum uses Pyth Network oracles for price feeds. When you redeem L/S tokens, the oracle price determines how much stablecoins you receive. Arbitrageurs use oracle prices to keep DEX prices aligned.

Related Terms

Pyth Network

A high-frequency oracle network providing real-time price data on Solana.

Synthetic Asset

A token that tracks the price of another asset without requiring ownership of the underlying.

More Technical Terms

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