Asset Valuation Proofs

Asset valuation proofs are cryptographic methods that verify the current market value of an asset without relying on a centralized exchange. These proofs are used in derivatives to determine the value of collateral and to trigger liquidations if necessary.

By using cryptographic techniques, these proofs provide an objective and tamper-proof valuation that can be used by smart contracts. This reduces the risk of price manipulation and ensures the integrity of the margin engine.

Asset valuation proofs are essential for the stability and reliability of decentralized financial instruments. They ensure that the protocol's risk management is always based on accurate and current market information.