Oracles
Avon relies on simple, predictable oracle behavior. Each strategy selects the oracle feed it wants to trust. Most strategies will use a combination of Chainlink Native Oracles and Redstone Bolt, with one feed acting as the primary source and the second as a fallback. Oracle choice stays local to the strategy. Poor selection in one strategy does not affect the rest of the system.
Avon does not impose a global oracle framework. It gives strategy creators the flexibility to choose the feed model that best matches the asset, the volatility profile, and the liquidation rules they want to enforce.
Chainlink Native Oracles
Chainlink Native Oracles provide millisecond-fresh data by embedding the oracle path directly into block production. When a transaction reads a price, the sequencer fetches a signed Data Streams report, verifies it onchain, and injects the update immediately before the transaction executes. This produces extremely fresh, deterministic prices.
On high-throughput chains like MegaETH, this model is ideal for lending markets that depend on timely liquidation signals.
According to the Chainlink Native Oracles document:
The sequencer detects that a transaction will read a feed.
It fetches the newest signed report from the Data Streams cache.
It verifies signatures onchain.
If the data is fresh, it writes the value to the aggregator right before the user’s transaction.
The proxy then returns the validated price to the protocol.
This path ensures that lenders and borrowers interact with up-to-date pricing at the moment a loan is opened or checked for liquidation. It also removes the need for oracles to push updates through keepers or cron jobs.
Native Oracles behave exactly like standard Data Feeds on the surface, so strategies can integrate them without custom logic.
Redstone Bolt
Redstone Bolt is the fast-path oracle architecture designed for high-throughput rollups. It streams signed price updates at extremely low latency and resolves them inside the same block using sequencing logic similar to MegaETH’s.
Bolt is optimized for:
sub-second updates
deterministic settlement
predictable block-level price freshness
fallback-safe behavior when feeds are volatile
gas-efficient integration for lending protocols
Bolt lets strategies see fast-moving assets accurately, which is important when strategies choose higher LTV or volatile collateral types.
Most strategies will pair Chainlink Native as primary and Redstone Bolt as secondary, or vice-versa depending on asset and reliability profile.
Primary + Fallback Model
A strategy defines one oracle feed as the primary source. If the primary feed becomes stale, unavailable, or is missing a signed update, the strategy falls back to the secondary feed.
Fallback behavior is defined in strategy code:
If primary feed is fresh → use primary
If primary is stale → consult secondary
If secondary is also stale → enforce safety mode (pause new borrowing, restrict withdrawals if LTV is high)
Fallbacks never move liquidity or change the borrower’s position. They only determine which price the strategy uses for health checks.
Each strategy decides:
which oracle is primary
which is secondary
how long a feed may be stale
how it behaves under failure
how thresholds should adjust under fallback conditions
This is fully transparent to lenders and borrowers.
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