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⚙️ Price Oracles

Price Oracle

Chiss Protocol integrates specialized oracles to provide accurate, real-time exchange rates for fiat currencies including NGN (Nigerian Naira), TRY (Turkish Lira) & JPY (Japanese Yen). These oracles aggregate off-chain and on-chain price feeds, including FX spot rates from top financial markets data providers.

The oracles filter and aggregate prices using a weighted standard deviation algorithm to reduce outlier risk and latency, ensuring tamper-resistant FX rate updates for the fiat currencies. The data feeds are relayed to the Chiss price contract, which consumes these rates for stablecoin minting, redemption, loan valuation, and swap execution across the protocol.

The oracles & price engine plays a critical role in trust-minimized FX operations & AMM behaviour adjustments by serving as a reference for the AMM to track price and maintain price alignment via arbitrageurs.

Price Discovery Process​

The Chiss Protocol employs a multi-layered approach to price discovery that ensures accuracy and reliability.

  1. Data Aggregation
    The oracle collects pricing information from multiple trusted sources, including both traditional financial institutions and digital currency exchanges. It monitors real-time market conditions across global trading hours
  2. Quality Assurance
    Chiss Oracles also filters out unreliable or outdated price information. It identifies and removes extreme price outliers that could distort market rates, ensuring only high-quality, verified pricing data enters the system
  3. Continuous Monitoring
    The oracle system updates the exchange rates every few milliseconds to maintain accuracy, providing 24/7 monitoring across different time zones. The price system also maintains historical price records for analysis and auditing.

Supported Currencies​

Our oracle network monitors and provides exchange rates for key international currencies:

  • Japanese Yen (JPY) |
  • Turkish Lira (TRY) | ₺
  • US Dollar (USD) |
  • Nigerian Naira (NGN) | ₦
  • Circle USD (USDC) | 🪙

Chiss Oracle Functions​

The oracle system seamlessly integrates across all areas of the Chiss Protocol infrastructure.

Protocol Stablecoin Operations

  • Provides accurate rates for minting new stablecoins.
  • Enables secure redemption of stablecoins for underlying currencies.
  • Maintains price stability across different currency pairs.
note

Chiss-native stablecoin rates are calculated against the US Dollar, providing a consistent reference point with global financial markets.

FX Lending Module

  • Calculates precise collateral values for loan operations.
  • Ensures fair and accurate loan-to-value ratios, risk level & health factor.
  • Price reliability to protect both lenders & borrowers from price manipulation.

Fx Swap Module

  • Powers automated market maker (AMM) functionality.
  • Enables efficient currency exchange across supported pairs.
  • Maintains price alignment through arbitrage opportunities.