Price Feeds System
Supra Oracle
Supra's Data Feed system is a cutting-edge oracle solution designed to deliver accurate, real-world data to blockchain networks, overcoming common challenges like reliance on intermediaries, high latency, and slow on-chain finality. This is achieved through Supra’s Distributed Oracle Agreement (DORA), a unique framework that utilizes advanced peer-reviewed research.
Distributed Oracle Agreement (DORA)
DORA is built on a highly efficient consensus algorithm tailored for oracle operations. It aggregates accurate price data (called S-value) for various assets and commodities by validating prices from up to 21 independent data sources. The protocol is designed with Byzantine Fault Tolerance and operates within a Tribe-Clan architecture, bolstered by Supra’s decentralized Verifiable Random Function (dVRF), which ensures randomness and prevents collusion. The system includes fault-tolerant techniques to maintain the reliability of data and to detect abnormalities before they can affect the results.
Computation of S-Value
Each node collects data from multiple sources and calculates the median of these values. Tasks are randomly assigned to nodes and reassigned periodically to prevent collusion. The network checks for coherence among node results using an "agreement distance parameter." Once confirmed, nodes calculate the arithmetic mean of the medians to form the final S-value, which is then signed by all nodes. This ensures that the data is accurate, decentralized, and resistant to manipulation or abnormalities.
Backup System
Black-Swan Events
Although Supra is a very reliable oracle, our risk-management approach always involves being prepared, even for the worst-case scenarios, such as Black Swan Events. These are extremely rare but highly damaging events. In this case, the event we are considering is the potential manipulation of Supra or a possible shutdown of their infrastructure. Without a safeguard system, this event could be extremely harmful to a Lending protocol like Sirio. However, we have developed a custom Backup system based on the TWAP system and the Liquidity Pools of Saucerswap.
TWAP & Liquidity Pools
Let's suppose that at any given moment the oracle stops working or is manipulated. This would represent a major issue for Lending protocols, as users' balances on the dApp would be falsified, and a bad actor could exploit this malfunction to their advantage.
For example, if a user could manipulate the price of a certain asset by lowering its value, they could deposit any collateral and borrow more of that token than they should, then sell it on an exchange at the real value.
Our system is capable of preventing such situations by using the TWAP system combined with the price feeds obtained from SaucerSwap's Liquidity Pools. This combination ensures excellent protection for the following reasons:
SaucerSwap is the leading DEX in the Hedera ecosystem in terms of volumes and TVL, making it an ideal source for fast and reliable price feeds. The high liquidity levels of the Liquidity Pools also make it much more difficult to manipulate prices.
The main issue with price feeds obtained from DEXs is that they can be a vector for attack by whales. For this reason, we use the TWAP system, which does not simply provide real-time prices from SaucerSwap. Instead, this mechanism calculates the average of historical prices over a given time interval. For example, if a daily interval and an hourly frequency are selected, the price obtained will be the arithmetic average of the last 24 prices from SaucerSwap, captured every hour over the past 24 hours. The logic followed is encapsulated in this formula:
This mechanism ultimately ensures the proper functioning of the platform, even under critical conditions. For this reason, many platforms use multiple oracles. While we wait for Pyth to list the tokens available on our platform, we believe this is the most reliable backup system.
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