Kamino uses numerous oracle security measures to increase resilience
Oracles help Kamino's smart contracts understand off-chain information, such as the market value of an asset. It's important that oracles report correct information to Kamino's smart contracts to ensure the security of users' funds, so several parameters have been introduced to minimize risk.
- Cross-referencing feeds from Pyth and Switchboard
- Time-Weighted Average Price (TWAP)
- Exponentially Weighted Moving Average (EWMA)
- Price bands
Querying prices from multiple up-to-date feeds and rejecting anomalies helps reduce the chances that Kamino's smart contracts accept a bad price. Sometimes, this means that legitimate transactions can fail during periods of volatility and when oracles deliver stale price feeds.