Oracle & pricing model

Orbit Finance needs a clear idea of “what the market price is” so it can place bins correctly, keep the active bin accurate and protect traders from weird pricing that comes from thin liquidity or manipulation. That is what the oracle and pricing model do together.

Think of the oracle as a reference thermometer. It does not force the market to trade at that price, but it tells the protocol what the broader market believes the price is. Orbit Finance uses this reference to sanity-check what is happening inside a pool. If someone tries to push price far away from reality with a small amount of capital ,the system can detect that the pool price is drifting too fast or too far compared to the oracle.

The pricing model is the second part. It decides how swaps move through bins and how the pool price updates as liquidity is consumed. In Orbit Finance price does not slide smoothly like older AMMs. It steps through discrete bins. Traders get fills at specific price levels, and price only moves when liquidity at that level is used up. That is why execution can feel more predictable.

Now combine the two. The pool’s price is driven by real trading and available liquidity, but the oracle acts like guardrails. If the pool price is close to the oracle, everything behaves normally. If the pool price starts diverging aggressively, Orbit Finance can increase fees, widen safety conditions or limit certain actions depending on your pool rules. This is especially important for permissioned markets and tokenised assets where you want fair pricing and you want to discourage manipulation.