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What is an oracle price mismatch?
What is an oracle price mismatch?

Understand how oracles and real time prices work.

Written by Felix Feng
Updated over a week ago

Sets use Maker and Chainlink oracles in order to get on-chain price data for rebalance auctions. A price mismatch is when the real time price data pulled from CryptoCompare deviates from the oracle's current price enough that it has a noticeable affect the rebalance auction.

Rebalance auctions for Social Trader Sets aim to start at 1% away from fair value. If the mismatched price is far enough, it may start the auction past fair value which may potentially increase the amount of slippage a rebalance will incur.

You can either start the rebalance with the mismatched price knowing that there will be a higher likelihood of slippage, or wait until the oracle's price is updated to the correct price.

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