Oracle system architecture showing price feed sources and safety mechanisms
Oracles are the backbone of Edel Finance’s pricing system. They provide real-time price information that powers portfolio values, borrowing limits, Health Factor calculations, and fair liquidations.
All prices shown in Edel Finance are index prices (benchmarks) used for risk calculations and portfolio display—not executable trading quotes.

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How We Use Oracle Data

Every asset in Edel Finance has an associated oracle that reports its current market price. The protocol uses these prices to:
1

Fetch prices

Pull the latest price for each asset from its primary oracle source
2

Verify freshness

Check that prices are recent and within expected ranges
3

Apply fallbacks

Switch to backup sources if primary data is unavailable or stale
4

Update protocol

Apply prices to calculate Health Factors, borrowing limits, and portfolio values

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Oracle Types

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Safety Mechanisms

Prices must be recent to be used. Stale data triggers conservative behavior:
  • Old prices won’t drive new liquidations
  • Borrowing may be temporarily restricted
  • System switches to fallback sources
New prices must fall within expected ranges:
  • Wild price jumps are investigated or ignored
  • Each oracle source provides guidance on acceptable variance
  • Protects against manipulation or bad data
For equity markets (xStock):
  • Closed markets trigger conservative policies
  • Halted trading prevents sudden price changes
  • Corporate actions handled smoothly
When primary sources fail:
  • Automatic switch to secondary oracle
  • Apply protective limits if no healthy source
  • Prefer safety over availability

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What This Means for You

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During Normal Operations

  • Accurate portfolio values with transparent, explainable price inputs
  • Fair liquidations based on verified market conditions, not transient noise
  • Stable borrowing with conservative policies during data outages
  • Real-time updates as market conditions change

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During Market Events

When traditional markets close (weekends, holidays):
  • xStock prices update less frequently
  • System maintains last known good prices
  • Conservative borrowing limits may apply
You don’t need to interact with oracles directly—they work automatically in the background to keep your positions accurate and secure.

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Technical Details

The oracle integration follows this process:
  1. Asset Request → Check primary oracle
  2. Primary Oracle → Returns fresh or stale data
  3. Fresh Data → Validate price
  4. Stale/Missing → Try fallback oracle
  5. Valid Price → Update protocol and calculate Health Factor
  6. Invalid/Unavailable → Apply safety policy and restrict operations
Oracle reliability is crucial for DeFi safety. Edel Finance only uses battle-tested oracle solutions with proven track records in production environments.