Oracle

Oracle in the context of smart contracts is a mechanism or middleware service that provides a communication interface between blockchain (on-chain) and external data sources (off-chain). Since smart contracts run in a deterministic and isolated blockchain environment (unable to make HTTP requests or directly access external APIs), oracles are responsible for retrieving, verifying, and delivering external data into the blockchain, allowing smart contracts to use this data to execute logic based on real-world conditions.

oracle

📖 Centuari Protocol — Oracle Integration Documentation

📌 Overview

Centuari Protocol integrates a hybrid oracle system as a critical component of its Modular Risk-Weighted Virtual Collateral Engine (MRVCE). This oracle infrastructure enables seamless valuation and risk-adjusted accounting for multi-asset restaking collateral without requiring on-chain token conversions, ensuring fairness, efficiency, and systemic risk management in a single-collateral market structure.

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📌 Oracle Architecture

📊 Data Sources:

• Primary Oracle: Chainlink Price Feeds
• Fallback Mechanism: On-chain Time-Weighted Average Price (TWAP) calculations

📊 Data Types:

• Real-time USD-denominated asset prices

• Volatility metrics (off-chain variance via Chainlink oracles)

• On-chain liquidity depth metrics (DEX reserve data when available)

📊 Supported Assets (Initial Deployment)

Asset	Oracle Source	Update Frequency
stETH	Chainlink LST Price Feed	3 minutes
rETH	Chainlink LST Price Feed	3 minutes
LBTC	Custom Chainlink / TWAP	5 minutes
EIGEN	TWAP / Governance Update Feed	1 hour

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📌 Oracle Data Flow

1. Price Feed Retrieval: Each underwriting operation triggers a call to the Centuari Oracle Aggregator smart contract.

2. Risk-Adjusted Value (RAV) Calculation: Retrieved price feed data is combined with dynamic risk weights from the protocol’s Risk Table, maintained by governance.

3. Virtual Collateral Conversion: The operator’s total RAV is virtually converted into a target base unit (ETH or BTC) using real-time oracle pricing, tailored to the market pair selected for underwriting.

4. Exposure Cap Validation: The system verifies whether the operator’s intended underwriting position remains within their permitted RAV exposure limits for the selected market.

5. Audit Logging: All price feed data, RAV calculations, and virtual conversions are immutably recorded on-chain for full transparency and auditability.

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📌 Security & Failover Mechanisms

• Fallback to TWAP: In the event of Chainlink oracle downtime, on-chain TWAP calculations will be used as a temporary price source.

• Oracle Data Freshness Validation: Underwriting operations are restricted to proceed only if price data is within an acceptable freshness window (configurable via governance).

• Future-Proofing via Multi-Source Consensus: Plans for integrating a medianizer-based oracle system leveraging additional feeds (e.g., Pyth, Redstone) to strengthen resilience for long-tail asset support.