FIVA
  • FIVA Overview
    • Introduction
    • Problem & Solution
    • Importance to the Space
  • FIVA Mechanics
    • Glossary
    • Understanding the Basics
    • Protocol Components
      • SY (Standardized Yield Token)
      • Yield Stripping
      • PT (Principal Token)
      • YT (Yield Token)
      • FIVA's AMM Design
    • Fee Structure
    • P&L in FIVA
    • FAQ
  • FIVA Manual
    • Getting Started
    • Use Cases
    • PT - Fixing Yield
    • YT - Leveraged Yield Farming
    • LP - Liquidity Provision
    • Mint - Get Liquidity from Future Yields Today
    • Arbitrage Opportunities
  • FIVA Strategies
    • EVAA
      • PT - Fixed USDT Yield
      • YT - EVAA Point Farming with up to 250x Multiplier
      • LP - Enhancing Your EVAA Returns
      • Mint - Get you Future USDT Yield now
    • Ethena
      • PT - Fixed USDe Returns
      • YT - Farming Ethena Airdrop with 60x Multiplier
      • LP - Multiple Income Streams
    • Storm Trade
      • PT - Fixed Yield on SLP
      • YT - Efficient Reward & Yield Farming on Storm
      • LP - Maximizing Returns from Storm Vaults
      • Max Supply - Determination Framework for Storm SLP Market
    • Tonstakers
      • LP - Enhancing Your Tonstakers Returns
  • FIVA Rewards
    • The Points System
    • Genesis Pass Collection
  • FIVA Pioneers Campaign
  • Security
    • Risks
      • Smart Contract Risk
      • Underlying Protocol Risk
      • Oracle Risk
      • PT Risks
        • Market Risk
        • Liquidity Risk
      • YT Risks
        • Market Risk
        • Implied Leverage
        • Zero Value at Maturity
        • Liquidity Risk
      • LP Risks
        • Impermanent Loss
        • Market Risk
        • Additional Considerations for LPs
    • Audit Report - Tonbit
  • Developers
    • SDK
    • npm package
    • Integrating Fixed-Rate Staking
      • SDK - Guide for Fixed Staking
      • API - Pools Metrics Endpoint
  • Links
    • Website
    • Telegram App
    • Telegram Channel
    • Telegram Community
    • X (Twitter)
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On this page
  • Understanding Oracle Importance in Yield Tokenization
  • The Challenge of Reliable Yield Data
  • FIVA's Oracle Security Strategy
  • Current Implementation Status
  • User Considerations
  1. Security
  2. Risks

Oracle Risk

Understanding Oracle Importance in Yield Tokenization

Oracles serve as the vital bridge between on-chain protocols and external data, making them a critical component of FIVA's yield tokenization system. In our context, oracles provide essential yield rate data that determine how assets are valued, tokenized, and traded within the protocol.

This dependency creates what we call "oracle risk" - the possibility that the data feeds our protocol relies upon could be compromised, manipulated, delayed, or simply inaccurate. Oracle failures could potentially lead to several adverse outcomes: incorrect pricing of Principal Tokens (PTs) and Yield Tokens (YTs), mispricing in liquidity pools, unfair distribution of yields, or even opportunities for exploitation.

The consequences of oracle failures can range from minor price discrepancies to significant protocol disruptions, making oracle security a fundamental consideration in our risk management framework.

The Challenge of Reliable Yield Data

Yield tokenization presents unique oracle challenges beyond those faced by typical DeFi protocols. While many DeFi applications primarily need price data for assets (like TON, BTC, or stablecoins), yield tokenization requires current yield rates of underlying protocols.

These more complex data requirements create additional vectors for potential oracle issues, as the data may be:

  • Less standardized across the ecosystem

  • More difficult to verify through multiple sources

  • More prone to manipulation due to lower transparency

FIVA's Oracle Security Strategy

FIVA is actively developing a comprehensive oracle framework designed specifically for the challenges of yield tokenization on TON:

On-Chain Migration:

  • Ongoing development of on-chain data getters to minimize reliance on external data feeds

  • Progressive migration of critical calculations to verifiable on-chain mechanisms

Collaboration with Underlying Protocols:

  • Direct coordination with underlying protocol teams to access verified yield data

  • Joint development of specialized data feeds for yield metrics when necessary

  • Monitoring systems to quickly identify discrepancies

Current Implementation Status

As FIVA continues to develop its oracle infrastructure, users should understand our current implementation status:

  • We are actively integrating with specialized TON oracle providers (Redstone)

  • Yield price feeds are being developed in collaboration with underlying protocols

  • Certain critical operations have additional verification layers already implemented

  • Our roadmap includes progressive decentralization of all oracle functions

The oracle infrastructure is being developed with a security-first approach, prioritizing reliability over speed of deployment.

User Considerations

When interacting with FIVA, users should consider the following oracle-related factors:

  • The quality of oracle data directly impacts the fair valuation of PT and YT tokens

  • During periods of extreme market volatility, oracle latency might temporarily affect pricing

  • The relative newness of yield data oracles in the TON ecosystem introduces additional uncertainty

We recommend that users:

  1. Stay informed about FIVA's oracle implementation updates

  2. Consider how oracle reliability might vary across different yield sources

  3. Understand that oracle risk is an evolving challenge that requires ongoing development

FIVA is committed to building the most reliable oracle infrastructure possible for yield tokenization on TON, recognizing that high-quality data feeds are fundamental to the integrity of our entire protocol.

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Last updated 22 days ago