> For the complete documentation index, see [llms.txt](https://docs.arenas.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.arenas.fi/arenas/oracle.md).

# Oracle

Each reserve within the <code class="expression">space.vars.FORK\_NAME</code> Protocol is associated with an oracle contract. These oracle contracts are responsible for reporting the market price of assets in the protocol, which is essential for determining collateralisation requirements.

In <code class="expression">space.vars.FORK\_NAME</code>, oracles are configured by protocol administrators through the AaveOracle contract. Once set, the oracle contract automatically submits price feed updates based on its internal logic (time-based, deviation-based, etc.).

### Types of Oracles in Use

Currently, there are two primary types of oracle contracts utilised on production <code class="expression">space.vars.FORK\_NAME</code> markets:

1. **Chainlink Price Feeds**: Chainlink oracles provide highly reliable, decentralised price data for various assets. These price feeds pull data from multiple sources and aggregate them, minimising the risk of manipulation or outages.
2. **Correlated Assets Price Oracle (CAPO)**: CAPO is designed for assets that have a strong correlation with another asset's price. For example, wrapped tokens can use this oracle to mirror the price of their underlying assets. CAPO leverages specialised logic to adjust and submit prices that follow the movements of these correlated assets.


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