Clear DefinitionsPrice Feed Aggregator
1 min read
Pronunciation
[prys feed uh-greh-gay-ter]
Analogy
Like a news aggregator compiling articles from many outlets to present a single summary view.
Definition
A service that collects price data from multiple sources—exchanges, on‑chain feeds—and computes a consolidated value (e.g., median, weighted average) for use by smart contracts.
Key Points Intro
Aggregators improve price feed reliability by combining multiple data sources.
Key Points
Source diversity: Pulls from centralized and decentralized venues.
Aggregation method: Median, trimmed mean, or volume‑weighted average.
Fault tolerance: Mitigates outliers and exchange outages.
On‑chain delivery: Publishes consolidated value at intervals.
Example
An oracle aggregator computes the 1 hour TWAP across five major exchanges and posts the result to a smart contract.
Technical Deep Dive
Off‑chain service fetches REST/WebSocket ticks, normalizes decimals, applies outlier detection (e.g., Chauvenet’s criterion), calculates VWAP, then signs and submits on‑chain via an aggregator contract.
Security Warning
Correlated failures across sources can still bias aggregate; include uncorrelated oracles.
Caveat
Aggregation interval trades off freshness vs noise reduction.
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