## 🍋 oracles

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### tl;dr

* Oracles provide a trustless way of getting extrinsic (off-chain) information.
* They provide the some key functions such as collect data from an off-chain source, transfer the data on-chain with a signed message, and make the data available by putting it in a smart contract’s storage.
* price oracles are any tool showing an asset's price but in context of defi 

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### in this repo

* [TWAP oracles](twap.md)

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### chainlink 


A decentralized oracle network consisting of three key smart contracts:

* a reputation contract: keep track of data providers' performance.
* an order-matching contract: selects bids from oracles using the reputation contract.
* an aggregation contract—and an off-chain registry of data providers.


One of the main challenges with such a decentralized approach is the formulation of the aggregation function. 
ChainLink proposes calculating a weighted response, allowing a validity score to be reported for each oracle response.