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Oracle

Every token in a silo uses an oracle which are third-party applications that provide updated token prices on-chain.

For example, the stS-S silo uses Redstone oracles for both stS and S price feeds.

maximum Loan to Value example

Oracle prices plug into other modules, such as borrowing parameters, to define current LTV.

Each silo can use up to two oracles per token - for borrowing power and solvency.

Providers​

Silo is oracle-agnostic, meaning users may deploy markets with any oracle or choice.

Currently, whitelisted oracles include Chainlink, Redstone, Pyth, and DIA.

Pricing Method​

Oracles can use different pricing methods to determine how their prices are derived.

Market Oracles​

Market Price oracles typically aggregate a token's price across multiple exchanges with some weighting methodology to output a single price.

Fundamental Oracles​

Fundamental oracles price derivative tokens based on their backing value rather than market price to mitigate short-term peg volatility.

This may be used in cases like wstETH/ETH where wstETH is redeemable at an increasing ratio for ETH.

Reserve Oracles​

Reserve oracles price derivative tokens based on reserve balance rather than market price to mitigate short-term peg volatility.

This may be used in cases like tBTC/BTC, where tBTC is redeemable 1:1 for BTC.