💹Oracle

Oracles are data providers that supply external information to smart contracts. In the context of DeFi lending and borrowing platforms, oracles are used to fetch price information and determine the value of assets used as collateral.

Joule leverages the PYTH oracle for its money market to ensure security and reliability, using a network of diverse price sources for robust protection against price manipulation. This system plays a crucial role in providing real-time, accurate price feeds vital for operations and calculating the Health factor of accounts—key for the stability of the lending system. Moreover, the Oracle's precise market price data is essential for effective risk management and triggering liquidations based on the Health factor, thus safeguarding the platform and its users from market fluctuations.