FAQ
Frequently Asked Question
How does the oracle prevent price manipulation?
The oracle blends external real-world sales with internal trading activity, with strict weighting caps and deviation limits. Funding makes manipulation costly, and TWAP filters remove abnormal or self-referential data.
What if spot market activity is quiet?
Trove’s markets are cash-settled perpetuals, so trading continues regardless of spot volume. Liquidity is driven by vault capital and funding incentives, not physical auctions.
Why use a blended oracle instead of a single data feed?
Collectibles trade across fragmented venues. A blended oracle ensures:
External validation (reality check)
Internal responsiveness (real-time pricing)
Stability through weighting and smoothing models
This structure makes Trove’s pricing both credible and reactive.
Why are markets cash-settled?
Physical collectibles introduce logistics, custody, and authenticity challenges. By keeping trades cash-settled in stablecoins, Trove can:
Offer instant settlement
Maintain continuous liquidity
Eliminate friction from physical delivery
What’s the difference between the LP Vault and Yield Vault?
LP Vault
Provides liquidity for active trading, earns funding and fees.
Yield Vault
Allows passive staking of USDC/USDT/SOL to earn $TROVE emissions. Both are essential to Trove’s ecosystem, but serve distinct user goals (active vs. passive).
How is risk managed in volatile periods?
Dynamic leverage adjusts automatically during volatility.
OI caps scale with liquidity depth.
Funding rates self-correct extremes.
Insurance layers protect against tail events.
Trove’s design prioritizes safety without compromising liquidity.
Can physical collectibles be used as collateral?
Physical integrations are on the roadmap. Future versions may allow graded cards as collateral via third-party custodians — fully separated from perps, and with documented custody verification.
What are Trove Points and how do they relate to $TROVE?
Points are part of Trove’s user incentive system, rewarding active participation. They may contribute to future airdrops or reward programs, but they are not tradable assets. $TROVE is the protocol token used for emissions, staking, and governance.
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