Key Formulas & Glossary
These formulas define Trove’s core market mechanics:
Oracle Price
Oracle = (Mark + Validator + EMA) / 3
Mark
The last traded price on Trove (real-time market sentiment).
Validator
Aggregated prices from 25+ verified sources (Collector, Courtyard, Phygitals, TCGPlayer, etc.).
EMA
Trove’s HyperPS exponential moving average model (smooths volatility).
Funding Direction
If Mark > Oracle → Longs pay Shorts If Mark < Oracle → Shorts pay Longs
Funding aligns mark and oracle prices by creating incentives for traders to take the cheaper side of the market.
Term
Definition
Live Trove trading price (reflects current market sentiment).
Oracle
Reference price blending on-chain and external data.
Funding
Periodic payments between longs and shorts that align Mark with Oracle.
Vault
Liquidity pool that supports two-sided markets and manages exposure.
Verified price sources from external marketplaces.
EMA (HyperPS)
Proprietary smoothing model for short-term price trends.
OI Cap
Open-interest limit per market to control total exposure.
TWAP
Time-weighted average price used to compute fair funding.
Last updated 3 months ago
