🌐 Oracle System

The Oracle System is Surge’s native BTC/USD price feed mechanism. Unlike external oracle plug-ins, Surge treats price discovery as a core module of the state machine, ensuring collateralization logic is deterministic, and consensus-driven.

The Oracle System powers:

• Collateral Monitoring - updating each dVault’s live Collateral Ratio (CR).
• Liquidation Enforcement - triggering liquidation conditions when CR < MinCR.
• System Integrity - anchoring liabilities to verifiable BTC/USD market prices without relying on off-chain actors.

By embedding price feeds directly into execution state, Surge eliminates discretionary trust and guarantees programmatic, protocol-native valuation of Bitcoin collateral.

Importance

1. Protocol-Native
   • Oracle updates are finalized inside the Execution State itself.
   • Validators replicate the same aggregation logic, guaranteeing a single source of truth.
2. Deterministic Medianization
   • Multiple signed submissions per block.
   • Aggregated into a medianized price point, finalized with the block.
   • Ensures liveness and robustness against outliers or malicious feeds.

Failure Safety

• Deterministic Fallbacks
  If insufficient updates are available, the system reuses the last confirmed state until new data finalizes.

• Graceful Degradation
  Execution halts collateral ratio updates temporarily, but state remains coherent and auditable.

• Manipulation Resistance
  Medianization from multiple sources prevents single-source manipulation. Validators rejecting invalid submissions ensures Byzantine resilience.

Oracle Events

The Oracle System emits canonical events:

• PriceUpdated { medianPrice, timestamp }
• CollateralRatioUpdated { vaultId, newCR }
• LiquidationTriggered { vaultId, CR }

These events bind signer permissions and provide a complete audit trail for liquidation logic.