What are oracles?

Oracles are price servers that query a set of exchanges and attest to the price of bitcoin so that smart contracts, like those used for Lava Loans, can leverage the price data.

The contracts powering Lava Loans need a source of data for the bitcoin price so that the contract can properly execute liquidations and loan repayments.

Lava's oracle implementation is open-source. You can review it here.

To learn more about oracles and how Lava integrates them, see this article.