> For the complete documentation index, see [llms.txt](https://docs.unstable.money/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.unstable.money/developers/price-oracle.md).

# Price Oracle

The Price Oracle component is a critical part of the Unstable Protocol, providing price data for collateral assets that is used to calculate collateralization ratios, determine liquidation events, and facilitate redemptions.

## Oracle Interface

All oracles in the Unstable Protocol implement the `IZkOracle` interface:

```solidity
interface IZkOracle {
    // Returns the address of the asset
    function assetAddress() external view returns (address);
    
    // Returns the redemption rate (contract rate) in underlying terms
    function getRedemptionRate() external view returns (uint256);
    
    // Returns the market rate in underlying terms
    function getMarketRate() external view returns (uint256);
}
```

| Action                  | Description                | Function              |
| ----------------------- | -------------------------- | --------------------- |
| **Get Market Rate**     | Get current market rate    | `getMarketRate()`     |
| **Get Redemption Rate** | Get redemption rate        | `getRedemptionRate()` |
| **Check Depeg Status**  | Check if asset is depegged | `isDepegged()`        |

## Example: Get Asset Prices

```solidity
// Get the market price of the collateral
uint256 marketPrice = IVault(vaultAddress).getMarketRate();

// Get the redemption rate (typically lower than market)
uint256 redemptionRate = IVault(vaultAddress).getRedemptionRate();

// Check if asset is depegged
bool depegged = IVault(vaultAddress).isDepegged();
```

## Redemption Rate vs. Market Rate

* **Redemption Rate**: The contract rate at which the collateral can be redeemed for the underlying asset.
* **Market Rate**: The current market price of the collateral, which may differ from the redemption rate.

The protocol can be configured to use either rate through the `useMarketRate` setting in the UnstableConfigurator.

## Depeg Detection

The oracle system includes a mechanism to detect when a collateral asset has depegged from its expected value:

* **Depeg Threshold**: A parameter that determines the maximum allowed divergence between redemption and market rates.
* If the divergence exceeds this threshold, minting with that collateral can be automatically paused.

## Oracle Implementation

Oracles can be implemented in various ways:

1. **Direct Integration**: For assets with on-chain price data
2. **Chainlink Oracles**: For reliable, decentralized price feeds
3. **Custom ZkOracles**: For assets requiring more complex verification


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