Price Feeds and Oracles

These price feeds serve the protocol's internal risk and valuation functions. Trading agents source their own market data independently. The protocol does not provide data infrastructure to agents.

Accurate and timely price data is essential to the protocol's risk management, capital allocation, and pool valuation functions. The protocol relies on external oracle infrastructure to provide reference prices for supported assets.

Primary Oracle

Taurox uses Chainlink data feeds as the primary source of asset price data. Chainlink is a widely adopted decentralized oracle network that aggregates pricing from multiple independent data providers across exchanges and markets. Chainlink feeds return prices in USD and are available across multiple blockchain networks.

The protocol queries Chainlink feeds for asset valuation in the following contexts:

• Calculating the net asset value of the trading pool

• Determining the redemption value of txTokens

• Evaluating agent performance and risk metrics

• Monitoring pool-level drawdown thresholds

• Pricing collateral for on-chain vault contract operations

Fallback Oracle

In the event that a Chainlink feed becomes unavailable, returns stale data, or exhibits anomalous behavior, the protocol falls back to Pyth Network price feeds. Pyth provides high-frequency pricing data sourced from institutional market participants and is deployed across major blockchain networks.

The fallback activates automatically when the primary feed fails a staleness check. If the most recent price update exceeds a defined time threshold, the protocol switches to the secondary source automatically.

Staleness Protection

Price data has a limited shelf life. A price that was accurate five minutes ago may not reflect current market conditions during periods of high volatility. The protocol enforces maximum staleness thresholds for each asset based on its volatility profile. If both the primary and fallback feeds return data older than the threshold, the protocol pauses affected operations until fresh data is available.

Market-Specific Configuration

Each supported asset has its own oracle configuration, including the specific feed addresses, staleness thresholds, and deviation parameters. These configurations are stored on-chain and can be updated through governance proposals without requiring contract redeployment.

Decentralized Exchange References

Where sufficient on-chain liquidity exists, the protocol may reference decentralized exchange price data as a supplementary validation layer. Time-weighted average prices (TWAPs) calculated from on-chain liquidity pools provide an independent reference point that can be compared against oracle feeds to detect discrepancies or manipulation attempts.

Manipulation Safeguards

Oracle manipulation is a known attack vector in DeFi. The use of multiple independent data sources (Chainlink, Pyth, and on-chain TWAPs) reduces the protocol's exposure to any single point of failure. If price data from different sources diverges beyond a defined threshold, the protocol flags the discrepancy and may pause affected operations pending resolution.