Flux Oracle is the backbone of a fully permissionless and decentralized infrastructure for working with and resolving off-chain data on the blockchain. This Oracle has been uniquely designed for flexibility without security trade-offs while being robust enough to scale with economic guarantees.

Data requests sent through the network are validated and settled by validators who have to put up collateral in the network’s native asset to simultaneously secure the network while making it difficult for malicious actors to corrupt data requests. This mechanism is proportionately correlated with the Total Value Secured (TVS) by the protocol, incentivizing validators to resolve data requests honestly and disincentivizing malicious actors from resolving outcomes incorrectly. When a data request needs to be settled, validators stake the network’s token to earn the data request fee in question. If there is more value secured by the protocol, validators are rewarded from the increased data request fees. When less data is secured, the fees drop to disincentivize malicious actors as less value stands to be gained, incentivizing data request providers to leverage the Oracle cheaply.

The economic guarantee mechanism is based on fluctuating data request fee model that increases or decreases according to the amount of value locked in the protocol. Doing this ensures that validators are proportionately incentivized to resolve data outcomes correctly.