API Aggregation

API aggregation is the practice of collecting data from multiple independent application programming interfaces to create a unified, accurate, and resilient data stream. In oracle networks, this involves querying numerous centralized and decentralized exchanges to determine the true market price of an asset.

By aggregating these sources, the protocol reduces reliance on any single exchange and filters out localized anomalies. This method is essential for providing high-quality price feeds for synthetic assets.

If one API fails or provides corrupted data, the aggregator can ignore it, ensuring the integrity of the overall system. It is a key component in creating reliable financial infrastructure on top of inherently volatile and fragmented blockchain markets.

The sophistication of the aggregation logic often determines the reliability of the price feed.