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  • Overview
  • ALTO Token Oracle (oALTO)

Oracles

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Last updated 11 days ago

Overview

The Alto Protocol leverages a combination of Chainlink and Uniswap V3 TWAP (Time Weighted Average Price) oracles with a 10 minute TWAP.

If either of the two oracles does not report a price for 24 hours, the Alto Protocol will automatically switch into "Solo Oracle Mode", in which the Oracle still in service will become the only Oracle employed by the Alto Isolated Market.

Whenever there is a need for an oracle value, the Alto protocol chooses between the output of Uniswap V3 TWAP and Chainlink Price Feeds for whichever is the most advantageous to the protocol. A high spread between the Chainlink and Uniswap value is equivalent to Alto taking a higher transaction fee. This is likely to happen in cases of high volatility, in which this model helps protect the USDO stablecoin’s price parity to the U.S. Dollar and Lenders in . This dual oracle design was also utilized to increase redundancy within the Alto Protocol.

For assets that do not have either a Uniswap V3 TWAP Oracle or Chainlink Price Feed, the price feed available will be utilized.

ALTO Token Oracle (oALTO)

The ALTO token Oracle implementation entails a comprehensive solution of using three 60 minute TWAP snapshots from Uniswap averaged against one another to deter market manipulation from effecting the final strike price(s) of oALTO call options.

Isolated Markets