# Oracle design

<figure><img src="/files/mO37HkN4TZlJZlbj1J5k" alt=""><figcaption></figcaption></figure>

{% hint style="success" %}
Oracle = Mark + Validator (last known price) + EMA / 3
{% endhint %}

Oracle price is formed from summing the total of [mark](/oracle/oracle-composition.md) (last traded price) + validator (25+ data sources, ie, [collector](https://collectorcrypt.com/marketplace/cards), [courtyard](https://courtyard.io/), [phygitals](https://www.phygitals.com/)) + EMA and dividing by 3. Each data point takes up ⅓ of weight.

As more volume and price data is formed on Trove to create a liquid market for live pricing, we can see certain weights (ie mark or EMA) take up more pricing weight (>33%). Pricing weight will be tested and vary in the Trove beta.

{% content-ref url="/pages/O4PyZFQtaAoocCTCSi1r" %}
[Oracle composition](/oracle/oracle-composition.md)
{% endcontent-ref %}

***

### Design Principles

External data grounds the oracle in real-world pricing. Internal signals ensure responsiveness to live market sentiment.

{% tabs %}
{% tab title="External" %}
Auction houses, marketplace sales, floor listings, and verified price books from 25+ sources like [Courtyard,](https://courtyard.io/) [Collector\_Crypt](https://collectorcrypt.com/), [Phygitals](https://www.phygitals.com/), and [TCGPlayer](https://www.tcgplayer.com/).
{% endtab %}

{% tab title="Internal" %}
Live mark price, executed trades, order book depth, and open interest metrics from Trove’s on-chain markets.
{% endtab %}
{% endtabs %}

<figure><img src="/files/ZeQYajMtSvaEWxIiLpVY" alt=""><figcaption></figcaption></figure>

***

### How the Oracle Is Calculated

Mark: $31.5 (last traded price on [Trove](mailto:undefined)) - The last traded price on Trove, reflecting real-time trader sentiment and market action.

Validator: $31 (sources sum/ quantity or sources) - Aggregated data from 25 verified external sources, including [Collector\_Crypt](https://collectorcrypt.com/), [Courtyard](https://courtyard.io/), [Phygitals](https://www.phygitals.com/), [TCGPlayer](https://www.tcgplayer.com/), and others.

EMA (HyperPS Model): $31.8 - Trove’s proprietary exponential moving average model, smoothing volatility and tracking short-term pricing trends.

$$
Mark($31.5)+Validator($31)+EMA($31.8)/3
$$

> Each input starts with ⅓ weight, ensuring that no single component dominates the oracle.

This tri-layered design anchors pricing in external reality while maintaining agility through internal market signals and predictive modeling.


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