Oracles are smart contracts that deliver external data, particularly price information, to the Fiet Protocol. They provide price data to determine the relative value of currencies, such as calculating how many USDC one BTC is worth at a given moment.
The Fiet Protocol adopts an oracle-agnostic approach, allowing LCC creators to select price feed mechanisms tailored to specific market requirements. Each LCC specifies its oracle via parameters, ensuring flexibility in implementation.Oracles in Fiet Markets implement the IOracle interface, adopted from the Morpho Blue protocol, defined as:
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function price() external view returns (uint256);
This function returns the price of one unit of signal currency quoted in the settlement currency, scaled to account for decimal differences between currencies.