Ensuring Price Accuracy

A decentralized price oracle is integral to maintaining the 1:1 peg of xUSD to the US dollar by providing accurate and up-to-date exchange rates.

• Oracle Network: The X ecosystem utilizes a decentralized network of trusted oracles to fetch real-time exchange rates. This network mitigates the risks associated with centralized price feeds, such as manipulation or single points of failure.

• Rate Update Mechanism: The Oracle Integration Contract periodically retrieves and updates exchange rates. It incorporates checks and balances to ensure that only accurate and current data are used, preventing outdated or incorrect information from impacting the system.

• Security: The decentralized nature of the oracle network enhances security and reliability, ensuring that the exchange rates used for minting and burning xUSD are always reflective of the current market conditions.