Feed Aggregation
Feed aggregation is the process of combining data from multiple sources into a single, reliable value for use in a protocol. By averaging or using a median of various price feeds, the system reduces the risk of relying on a single potentially corrupted source.
This technique is widely used in decentralized oracle networks to provide a robust price reference for financial derivatives. It helps to filter out outliers and noise, ensuring that the protocol acts on the most representative market price.
Effective feed aggregation is a critical component of maintaining the integrity and fairness of decentralized financial markets.