Oracles

Oracles are specialized entities that connect blockchains to external data sources, enabling smart contracts to access real-world information.

In the StakeWise protocol, Oracles monitor validator performance data on the Beacon Chain and reach consensus on validator registration approvals, reward distribution, and exit processes within Vaults.

Oracles are a crucial part of the protocol, and they must remain sufficiently decentralized and maintain high uptime for StakeWise to work seamlessly.

The protocol operates with 11 Oracles selected and approved ↗ by the StakeWise DAO through governance processes. These Oracles form a decentralized network of independent nodes that ensures protocol resilience and prevents single points of failure. This distributed approach eliminates centralized control, reduces regulatory capture risks, and ensures protocol longevity through consensus-based decision making.

Oracle decisions require threshold-based consensus depending on the operation. Validator registration requires 8 out of 11 Oracle signatures, while reward updates need 6 out of 11 signatures.

Through Oracle consensus, all Vaults stay synced with the Beacon Chain, display accurate information, trigger secure and timely new validator registrations, and fulfill exit requests. These duties are performed automatically using Oracle software developed by the StakeWise team, with no manual actions involved.

Oracles are one of the protocol's building blocks to deliver seamless staking and unstaking experiences.

Oracle Network Participants​

Oracle Network Participants