Vault Oracle (Reporting)

Custom Oracle for On-Chain Vault Valuation and Share Price Calculation

https://docs.dittonetwork.io/overview/protocol-overview

Overview

Ditto offers your vault infrastructure an upgrade through the Ditto Custom Oracle Service — a decentralized, restaked oracle that publishes the portfolio NAV on a fixed schedule (e.g., hourly/4h/daily) with a defined SLA and max‑staleness guard.

This value becomes the source of truth for calculating the current vault share price, defined as:

NAVusd=∑(assets marked to FMV)−liabilitiesNAV_{\text{usd}} = \sum (\text{assets marked to FMV}) - \text{liabilities}

These values use 18 decimals with rounding mode “round‑down” and the base currency (USD) explicitly stated. This ensures a single, unambiguous formula — eliminating pricing disputes and providing a reliable reference for ERC-4626/7540 hooks that consume this value — allowing all depositors to see the near-real-time, verifiable performance; typical lag = block finality + update interval.

Pricing Policy

Source order: on‑chain oracle/TWAP → vendor FMV → VWAP fallback. TWAP window: 30 minutes (default). SLA: 5 minutes. Max staleness: 45 minutes. FX oracle & cache TTL: configured by governance

Prices are aggregated in order of priority: first from on‑chain oracles or TWAPs, then from vendor full‑market‑value feeds, with a volume‑weighted average price (VWAP) as a fallback.

Motivation

Today, vault performance and total asset value are derived from multiple off-chain dashboards manually. These are valuable tools but come with limitations:

  • Updates are delayed and infrequent.

  • Off-chain dashboards require human reconciliation of wallet lists and signer changes; our feed removes that manual step by attesting source lists on-chain.

By integrating Ditto’s Custom Oracle, your vault gains a continuous, decentralized, and transparent pricing mechanism — making the vault share value cryptographically verifiable at all times.

How It Works

1. Data Aggregation

Ditto restaked operators fetch data from all relevant asset sources:

Source
Description

Indexers/RPC scans example

Fetched via Debank / RPC scans.

Perp DEX positions

Collateral ± unrealized PnL at the oracle price; apply a haircut if the price feed is stale.

CEX balances (read‑only keys)

Use exchange APIs with read‑only keys; mark balances to FMV via the pricing policy.

🔒 Read-only API keys are shared among Ditto operators and never exposed publicly. Keys are managed through KMS/HSM with at-rest encryption, restricted by IP allow-listing and least-privilege scopes. Only fetcher pods have ephemeral access; operators never view raw credentials. Key rotation cadence(e.g. 30 days) and a compromise response playbook are enforced to ensure ongoing security integrity. Operators never see raw secrets; only short-lived fetcher tokens are used

2. Operator Consensus

Each Ditto restaked operator independently computes the portfolio’s total USD value based on the aggregated data.

  • Operator set size (n) and threshold (t) define how many signatures are required to publish NAV.

  • Aggregation: median of submitted NAV values with a median absolute deviation (MAD) outlier filter to remove outliers.

  • Signature scheme: BLS aggregated signatures, with slashing or eviction for misbehaving operators.

Values are then submitted to the Othentic Consensus Aggregator, which:

  • Validates multiple operator submissions and their signatures.

  • Publishes this value on-chain.

3. On-Chain Publication

The on-chain value represents the Net Asset Value (NAV) of the vault, updated periodically (e.g., hourly or daily).

This value directly determines the current vault share price used for:

  • New deposits: calculates how many shares the user receives per token deposited.

  • Withdrawals: determines how much underlying value each share redeems.

  • Transparency: gives depositors a verifiable real-time metric of vault performance.

To prevent stale-price exploitation during periods of high inflows or outflows, the protocol applies several safeguards:

  • Deposit/withdrawal queue windows: aligned to NAV update intervals.

  • Deviation guard: compares the published NAV against a TWAP NAV.

  • Preview functions (previewDeposit, previewWithdraw): revert when staleness exceeds the SLA, ensuring users interact only with fresh prices.

  • An optional anti‑arbitrage spread may be applied near the SLA edge.

These controls ensure that pricing integrity and fairness are maintained, even under volatile market conditions.

Benefits

  • Provides a near‑real‑time (latest verified) on‑chain NAV and price per share feed with a defined SLA and staleness guard.

  • Supports both DeFi positions and CEX balances via read‑only keys.

  • Enables ERC‑4626/7540 vault hooks to access the latest verified NAV for depositor fairness.

  • Gas infrastructure via ERC‑4337/7579 is used only for transaction submitters, reducing overhead for vault operators.

Deployment Flow

  1. Setup

    • Curator provides read-only API keys and wallet addresses.

    • Ditto registers these sources in the oracle config.

  2. Operator Fetch & Compute

    • Restaked operators independently fetch and calculate total USD value.

  3. Consensus & Publication

    • Aggregated operator value is posted on-chain via Ditto Oracle Automation.

    • The vault smart contract uses this value to fetch share price.

  4. Verification

    • Any user can verify vault NAV and share price directly on-chain.

    • Frontend dashboards display “verified by Ditto” tag with latest update timestamp.

To start integration please contact [email protected]

Service Summary

  • Provides a near‑real‑time (latest verified) on‑chain NAV and price per share feed with a defined SLA and staleness guard.

  • Supports both DeFi positions and CEX balances via read‑only keys.

  • Enables ERC‑4626/7540 vault hooks to access the latest verified NAV for depositor fairness.

  • Gas infrastructure via ERC‑4337/7579 is used only for transaction submitters, reducing overhead for vault operators.

Outcome

By integrating Ditto’s Custom Oracle, your vault transitions from opaque manual valuation to fully transparent, on-chain verified NAV and share pricing.

This improves:

  • Depositor trust

  • Operational transparency

  • Auditability

  • Market confidence

  • Reduced pricing delay

and positions your strategy as a leader in institutional-grade DeFi asset management.

We put NAV on-chain without migrating your stack; competitors either keep NAV off-chain (Cryptio/Lukka) or require moving assets into their vault (Enzyme).

Platform
On-Chain Pricing Feed
DeFi + CEX support
Notes

Ditto Custom NAV Oracle

✅ Yes — Othentic BLS-aggregated attestations

Yes (DeFi + CEX read‑only keys)

On‑chain quorum publishes NAV and pps; can ingest FMV from vendors like Lukka/Cryptio.

Cryptio

❌ None

Partial (off‑chain accounting)

Off‑chain accounting; no on‑chain oracle.

Lukka

❌ None

Partial (enterprise FMV)

Produces FMV but no on‑chain output; can be ingested by Ditto.

Enzyme

✅ Internal (vault-level)

No external CEX

Native vault accounting internal to Enzyme; cannot aggregate external CEX balances.

Update SLA and Failure Handling

To maintain reliable on-chain pricing, the NAV Oracle enforces a strict Service Level Agreement (SLA) for update frequency. If updates are missed or delayed, the system automatically applies fallback and signaling mechanisms.

Mechanisms:

  • Skip-block policy: minor missed updates within tolerance are skipped without slashing to prevent redundant transactions.

  • Operator set churn: persistent underperformance triggers automatic replacement of inactive operators from the active set.

  • Staleness guard: when the update delay exceeds the SLA threshold, reads fall back to the last valid NAV value, and a Stale() event is emitted on-chain.

These controls ensure continuity of data availability while preserving transparency around operational reliability.

Proof Bundle Publication

Each NAV update includes a proof bundle, containing:

  • Source data snapshots (DeFi + CEX positions)

  • Pricing ticks and oracles used

  • Individual operator signatures

The hash of the proof bundle is published on-chain with every update, while the full bundle is stored off-chain for audit and verification purposes.

Events:

  • ProofBundlePublished(proofHash, proofURI) — emitted per update.

  • The proofURI provides access to the full verification bundle hosted on IPFS, Arweave, or a similar decentralized store.

This ensures reproducibility, auditability, and verifiable linkage between on-chain NAVs and off-chain data sources.

Incident Communication

In the event of data feed issues, missed updates, or operator coordination failures, Ditto maintains a dedicated incident communication channel and status page.

Key components:

  • Real-time status updates on NAV Oracle health and SLA adherence.

  • Public incident reports summarizing root cause, resolution timeline, and corrective measures.

  • Operator coordination and transparency log for historical events.

This guarantees operational transparency and trust for all vault integrators and depositors.

PreviousDitto ConsensusNextLooping Strategy

Last updated