📅Rate Oracle Logic

Accurate, Reliable, Real-Time Rate Intelligence

At the heart of CrediX’s optimization engine lies the Rate Oracle — a modular on-chain system responsible for collecting, standardizing, and delivering the latest interest rate data from multiple lending and borrowing protocols. This component is essential for making precise and timely allocation decisions.

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Why a Dedicated Rate Oracle?

DeFi interest rates are volatile and protocol-specific. Each platform (Aave, Compound, Morpho, etc.):

• Uses different methods for calculating APY/APR

• Updates rates on different block intervals

• May use either stable or variable rate models

A generic rate-fetching approach isn’t enough. CrediX’s Rate Oracle normalizes these inconsistencies into a standardized, comparable format — ensuring the optimization engine always acts on clean, accurate data.

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Key Objectives

• Unified Rate Format Normalize all protocol rates into comparable APY and APR metrics.

• Real-Time Tracking Monitor rate changes per block or with minimal delay.

• Risk Awareness Include volatility, utilization rate, and liquidity context with each rate.

• Optimization-Ready Output is consumed directly by StrategyManager and BorrowingEngine contracts.

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Core Components

1. RateFetcher Module

Each protocol has a custom rate fetcher that reads from:

• LendingPool contracts (e.g., getReserveData() in Aave)

• InterestRateModels (e.g., in Compound)

• Protocol subgraphs (for on-chain/off-chain hybrid feeds)

The fetched data includes:

• Supply APY

• Borrow APR

• Utilization Rate

• Emission/Incentives (if any)

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2. RateNormalizer

Once fetched, raw rate data is normalized into a consistent format:

solidityCopyEditstruct NormalizedRateData {
    address protocol;
    address asset;
    uint256 supplyAPY;  // in basis points
    uint256 borrowAPR;  // in basis points
    uint256 utilization;
    uint256 timestamp;
}

This allows rates from different protocols to be compared and ranked.

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3. Oracle Aggregator

A central contract aggregates all NormalizedRateData entries across supported protocols.

Responsibilities:

• Store latest values per asset/protocol

• Provide getBestRate(asset, mode) interface

• Enable querying by any contract (StrategyManager, UI, alerts)

• Emit events on significant rate changes (for frontend display & automation)

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Smart Contract Interface Example

solidityCopyEditinterface IRateOracle {
    function getSupplyAPY(address protocol, address asset) external view returns (uint256);
    function getBorrowAPR(address protocol, address asset) external view returns (uint256);
    function getBestLendingRate(address asset) external view returns (address protocol, uint256 apy);
    function getBestBorrowingRate(address asset) external view returns (address protocol, uint256 apr);
}

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Data Freshness & Update Triggers

• Rates are updated on deposit/withdrawal events

• Manual or scheduled updates (e.g., via Keepers or Gelato) can also be triggered

• Oracle tracks block timestamps for freshness validation

• Frontend displays “last updated” time for full transparency

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Risk & Stability Considerations

• Fallbacks: If a protocol becomes unresponsive, a cached rate is used for short-term stability

• Rate Spikes: High volatility is flagged for optional rate smoothing

• Protocol Pauses: If a protocol halts borrowing/lending, it’s automatically de-prioritized

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Sample Use Case: Best Lending Rate

solidityCopyEdit(address bestProtocol, uint256 bestApy) = rateOracle.getBestLendingRate(USDC);

// StrategyManager then allocates funds to that protocol’s adapter.

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Summary

The Rate Oracle in CrediX acts as a real-time intelligence engine that powers dynamic capital allocation and borrowing optimization