The Flare Time Series Oracle (FTSO) is an enshrined oracle that provides decentralized data to Flare.
Since its debut two years ago, FTSOv1 has earned the reputation for offering consistent pricing information with zero downtime. FTSOv2 builds on the robust foundation laid by its predecessor, and sets a new benchmark for decentralized data.
What’s in FTSOv2?
- Secure
FTSOv2 is enshrined into Flare’s core protocol, meaning it benefits from the full economic security of the entire network. It’s as secure as the blockchain itself. - Fast
FTSOv2 updates with each new block on Flare, roughly every 1.8 seconds. This makes it the ideal oracle for DeFi – supporting use cases including lending and borrowing, perpetual and options trading, cross-chain order books, and many more. - Scalable
FTSOv2 supports up to 1000 feeds across various asset classes including equities, commodities, and cryptocurrencies, with access to 2 weeks of historical data. - Decentralized
Each feed is supported by around 100 independent data providers, chosen by users who delegate their stake to them. This decentralization ensures the system stays honest, with strict penalties for misbehavior. - Cost-Effective
Querying most block-latency feeds from FTSOv2 is free on Flare!
How FTSOv2 Works
The upgrade offers faster, more scalable, and cost-effective data, thanks to a sophisticated system powered by multiple components:
- Verifiably Random Selection
Every 1.8 seconds, FTSOv2 employs a manipulation-resistant verifiable randomness algorithm to provide block-latency feeds. The more stake a provider has, the more likely they are to be chosen, this ensures fairness while maintaining the integrity of the data. In addition, the system uses all data providers to submit updates in a commit-reveal process to anchor feeds every 90 seconds.
- Incremental Delta Updates available every second
Once selected, data providers submit small adjustments (deltas) to the previous feed value. These updates ensure that feed data stays up-to-date. By making these micro-adjustments every block, FTSOv2 remains accurate in a wide range of market conditions. - Volatility Incentives
During times of high market volatility, prices can change fast. To handle this, FTSOv2 can temporarily increase the number of data providers submitting updates, ensuring the system can react quickly to sudden price movements. This is an optional, permissionless feature that can be triggered in exchange for a fee. - Feed Anchoring
To ensure long-term accuracy, FTSOv2 uses anchor feeds. These feeds use a full commit-reveal process across around 100 data providers and update every 90 seconds. Data providers are only rewarded if the block-latency feeds align with the anchor feeds every voting epoch.
Why Does FTSOv2 Matter?
FTSOv2 is not just an incremental improvement; it’s a leap forward in decentralized data solutions. Here’s why it’s a big deal:
- Guaranteed Security
Flare’s validators serve a dual-role, as block validators and data providers. This enshrined architecture ensures that every single feed is secured by the entire network. Developers and users no longer have to worry about the security configuration and cost of individual feeds. - Reliability
With 67% of FLR’s circulating supply either staked or delegated by users and no individual provider controlling over 3.3% of total stake, FTSOv2 operates with robust decentralization. This ensures no central point of failure, significantly enhancing the reliability of the system. - Accessible
FTSOv2 removes financial barriers by offering most feeds at no cost, making decentralized data more accessible than ever. In addition, FTSOv2 is remarkably easy-to-use, with developers needing to write less than 10 source lines of code to get started. For example:
Enhancing Flare’s DeFi Ecosystem
FTSOv2 paves the way for innovative DeFi dApps, while empowering existing platforms to refine and expand their offerings. Flare users can benefit significantly from the FTSOv2 in several ways within the rapidly growing Flare DeFi ecosystem:
- Enhanced Lending and Borrowing
FTSOv2 enables more frequent price feeds, allowing lending and borrowing platforms like Kinetic to issue and settle loans more efficiently, liquidate undercollateralized positions accurately, trigger collateral swaps based on real-time market condition, and help protect against insolvency. - Advanced Perpetual Futures and Options
With faster and reliable data feeds, platforms like XDFi and SparkDEX can power advanced financial instruments and help ensure platform solvency by dynamically setting user funding rate and settling agreements. - Improved Cross-chain Order Books
The upgraded FTSO facilitates platforms like LayerZero and RainDEX to enable more efficient, smooth and secure cross-chain transactions. - Real World Assets Integration
The enhanced oracle enables more accurate pricing of real-world assets on-chain, it can support on-chain treasury yields like Clearpool, enabling further integration between traditional finance and blockchain.
Begin your journey with FTSOv2 today by exploring the ecosystem and building with Flare Developer Hub.