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The Oracle

Some parts of the protocol need information that does not live on Bitcoin, most importantly prices. For example, FIRE bond pricing needs a reference price to work. SUBFROST provides this through a decentralized oracle.

How it works​

Rather than trusting a single server to report a value, the oracle runs as a small distributed group. Each participant independently reads the relevant external source and the current chain state, and the group must reach agreement before a value is committed on-chain. A single participant cannot dictate the result on its own.

Because the value is agreed by a threshold of the group and posted on-chain, contracts that depend on it (such as the FIRE bond mechanism) can read a price that is resistant to any one party manipulating it.

Where it is used​

  • FIRE bonds. The bond price is anchored to an oracle-reported reference, with a floor tied to the protocol treasury, so bonds cannot be sold below the value backing them.
  • Perpetual futures (unreleased). Details will be released when ready.

Where to go next​