We know that a free economy and the reverse oracle can be self defeating for many economies, that is why our team of professionals developed a new oracle with a lag that is efficient for the pool.
The great difference of this type of oracle is found when the value of the currency is decreasing, where instead of paying the total of more than it should pay to match the amount of rewards in real values, what it does is a average of the amount that the currency lowered and pays more but not in full. What this ensures is the long-term sustainability of the pool.
At 00.00 UTC the oracle price is analyzed and compared with the previous 24 hours, if the price is above (+) it will be updated as we are used to seeing (the upward oracle works perfectly), but if the price is above below (-) will be updated as follows:
- Day 1: $RPS = $10 // Day 2: $RPS = $9 : Lower the price of $RPS by 10% // Since the price dropped, the oracle would have to pay 10% more to reach the same amount of real value in rewards, in our case the oracle will take care of averaging the drop and will pay in this case 5% more (despite the fact that the drop of the coin is 10%)
- Day 2: $RPS = $9 // Day 3: - $RPS = $10: The price of $RPS rises, the oracle is updated by paying 10% less in $RPS (conventional oracle on the rise).