> For the complete documentation index, see [llms.txt](https://docs.ethena.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ethena.fi/technical-design/use-of-oracles.md). # Use of Oracles ## Overview "Oracles" typically refer to price feeds a protocol utilizes to perform key business logic and functions. Ethena utilizes price feeds from various sources given the importance of real-time data to trading & risk workflows which exist offchain. The system is split between onchain and offchain components. ### Price Feeds & Ethena's Offchain Systems Ethena relies on price feeds in order to price the **mint** and **redeem** *USDe* requests per the available derivatives market liquidity as well as manage the risk of derivatives positions. Real-time data feeds indicate not only where the system delegates protocol assets, but the various risk profiles between the exchanges. With this in mind, it's critically important that Ethena has access to & is constantly consuming real-time price feeds, especially from where it matters most; the exchanges where the system holds derivatives positions due to their margin requirements. Ethena consumes real-time pricing information from three primary sources: 1. CeFi Exchanges such as Binance, Bybit, Okx, Deribit, Bitmex and Bitget. 2. [Pyth](https://pyth.network/). 3. [Redstone](https://redstone.finance/) This real-time data is used extensively throughout the system to apply business logic, but to also ensure the integrity of all actions. In that way, the system relies heavily upon CeFi Exchange price feeds, given the volume-weighted importance of their traded instruments, and also upon Pyth and Redstone to validate internal pricing throughout the system and before every single **mint** and **redeem** *USDe* request is accepted by Ethena. This ensures thorough checks for any inconsistency and protect the protocol from manipulation that might be occurring from one/multiple sources. Ethena is constantly working to provide the resilience and integrity of price sources and evaluating other low latency offchain pricing services. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://docs.ethena.fi/technical-design/use-of-oracles.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.