Price Reporting Mechanisms

Oracle

Price reporting mechanisms serve as critical infrastructure, bridging offchain market data with onchain smart contracts to enable the execution of derivatives. These systems aggregate trade information from disparate cryptocurrency exchanges to produce a single, representative valuation. By filtering for outliers and maintaining low latency, they provide the necessary data integrity for options pricing and collateral liquidation.
Price Gapping A detailed view of interlocking components, suggesting a high-tech mechanism.

Price Gapping

Meaning ⎊ A sudden jump in an asset's price where no trading occurs between the previous level and the new level.