Oracle

Each reserve within Tydro is associated with an oracle that reports the market price of the underlying asset. These prices are essential for determining collateral value, borrowing capacity, health factors, and liquidation eligibility.

Tydro uses Chainlink as its price oracle provider. Chainlink is a decentralized oracle network that aggregates market data from a wide set of independent node operators and premium data providers, with reports finalized on-chain. This decentralized model is designed to be resistant to manipulation, downtime, and single points of failure.

How prices reach the protocol

Each Chainlink price feed publishes updates on-chain when one of two triggers fires:

• Deviation threshold — the asset's price has moved by more than a configured percentage since the last update.

• Heartbeat — a maximum time has elapsed since the last update.

Together these ensure that on-chain prices stay close to market while bounding update frequency for cost efficiency.

The protocol reads prices through the TydroOracle contract, which routes each request to the appropriate Chainlink feed for the asset. The on-chain TydroOracle address is listed on the Addresses page.

Why Chainlink

• Decentralization — multiple independent nodes report, aggregated on-chain.

• Reliability — deviation thresholds and heartbeats are configured per asset to balance price freshness against gas cost.

• Track record — Chainlink secures the majority of value across DeFi lending protocols.

For more information about Chainlink price oracles, see the Chainlink documentation.