Aggregated Feed Models

Aggregated Feed Models involve combining price data from numerous independent sources to produce a single, reliable price for a smart contract. This model is superior to using a single source because it dilutes the impact of any single compromised or faulty data point.

By using statistical methods such as medians or weighted averages, the protocol can produce a price that is highly resilient to outliers. In derivative trading, this ensures that the protocol price closely tracks the broader market price, minimizing the risk of price discrepancies.

This approach is standard for high-quality oracle networks that support major decentralized financial applications. It provides a reliable and transparent way to bridge off-chain market information to on-chain financial instruments.