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FTSO

Web3 • Tools • Data Infrastructure

Flare Time Series Oracle — decentralized price feed network

FTSO (Flare Time Series Oracle) is the native decentralized oracle system built into the Flare Network. It delivers continuous, on-chain price feeds by aggregating submissions from independent data providers who compete on accuracy. Unlike external oracle solutions that bolt onto blockchains as middleware, FTSO is embedded at the protocol level — making price data a first-class network service rather than a third-party dependency.

Every few minutes, FTSO data providers submit price estimates for supported asset pairs. The system calculates a weighted median based on each provider’s delegated vote power. Providers whose submissions land within the rewarded band — a narrow range around the median — earn epoch-based $FLR rewards. Providers outside the band earn nothing. This creates a self-correcting accuracy market where poor performers lose delegation and strong performers attract more.

Delegators participate passively by assigning their $FLR token weight to providers they trust. When a provider earns rewards, delegators receive a proportional share minus the provider’s fee. No tokens leave the delegator’s wallet. No lockup is required. The entire system runs without centralized coordination, creating a permissionless data layer that any smart contract on Flare can query without external API calls or off-chain dependencies.

Use Case: A DeFi protocol on Flare pulls live $XRP/$USD and $KAG price feeds directly from FTSO to power its lending collateral ratios — no Chainlink subscription, no off-chain API, no single point of failure. Meanwhile, the protocol’s users delegate their $FLR to high-accuracy providers through Bifrost Wallet and earn passive rewards every epoch while their tokens remain liquid for deployment on Cyclo or Enosys Loans.

Key Concepts:

  • Data Delegation — User-facing mechanic for earning passive oracle rewards by backing providers
  • State Connector — Sibling verification system proving cross-chain events while FTSO delivers price feeds
  • $FLR — Native token whose delegation weight powers FTSO accuracy incentives
  • Epoch-Based Rewards — Time-segmented distribution model FTSO uses to settle provider compensation
  • Decentralization — Architectural principle FTSO enforces by distributing data sourcing across competing providers
  • $SGB — Canary network where FTSO runs in parallel for live testing before Flare mainnet updates
  • Passive Yield Delivery — Earning model that FTSO delegation enables without active management

Summary: FTSO is Flare’s protocol-native oracle engine — a decentralized price feed system where providers compete on accuracy, delegators earn passive yield, and smart contracts access real-world data without off-chain dependencies.

Feature FTSO (Flare) Chainlink Pyth Network
Architecture Protocol-native, embedded in L1 Middleware overlay across chains Pull-based, cross-chain relay
Data Sourcing Independent providers + delegator weight Node operator network First-party data publishers
User Participation Delegate tokens to earn passive yield No delegation — staking only for operators No direct user participation
Cost to Query Free — native to Flare contracts Subscription or per-query fees Gas cost per pull request
Accuracy Incentive Median band — miss the range, earn nothing Reputation + slashing Publisher accountability

📡 FTSO Mechanics Reference

how the oracle cycle works from submission to reward

Stage What Happens Who Benefits
Submission Window Providers submit price estimates for supported pairs Providers with accurate data models
Reveal Phase Committed prices are revealed and verified on-chain Network transparency — all submissions public
Median Calculation Weighted median computed from all submissions using vote power Smart contracts querying live prices
Reward Band Providers within the accuracy band earn epoch rewards Accurate providers + their delegators
Distribution Rewards split between provider fee and delegator share Passive delegators proportional to weight

⚙️ FTSO Provider Selection Framework

structured criteria for choosing which providers to delegate to

Selection Criteria What to Look For Red Flag
Reward Rate 90%+ epoch reward consistency over 30+ days Below 80% or inconsistent week-to-week
Fee Rate Competitive with top-performing providers (typically 15-20%) Sudden fee increases without performance improvement
Vote Power Concentration Moderate share — not top-heavy with delegation Over-concentrated providers dilute per-token rewards
Community Presence Transparent operations, accessible support Anonymous operator with no communication channels
Infrastructure Diversity Multiple data sources, redundant infrastructure Single-source data feeds vulnerable to manipulation

✅ FTSO Delegation Readiness Checklist

four-quadrant assessment before committing delegation weight

Provider Verification Wallet Security
☐ Reward rate verified above 90% over 30-day window ☐ Delegation executed from self-custody wallet only
☐ Fee rate compared against top 10 providers ☐ Hardware wallet secured via Ledger or Tangem
☐ Vote power not over-concentrated in single provider ☐ Seed phrase stored offline — never entered on-screen
Delegation Strategy Yield Compounding
☐ Delegation split across 2+ providers for redundancy ☐ Rewards claimed and wrapped on regular cadence
☐ Provider performance reviewed monthly ☐ Wrapped tokens re-delegated to increase vote power
☐ Delegation accessed through Bifrost dApp interface ☐ Surplus rewards routed to $KAG/$KAU for preservation

🔄 Capital Rotation Map — FTSO Rewards Across Market Phases

how protocol-native oracle yield behaves through each cycle stage

Phase FTSO Environment Strategic Action
1. BTC Accumulation Low delegation competition — higher per-token rewards Wrap and delegate maximum $FLR — compound every epoch
2. ETH Expansion Oracle demand grows as DeFi protocols launch on Flare Maintain delegation, stack liquid wrappers into Cyclo
3. Large Alt Rally $FLR price appreciates — delegation yield doubles in fiat terms Hold delegation base — let price appreciation multiply reward value
4. Small/Meme Crowd ignores oracle infrastructure for meme speculation FTSO rewards keep compounding while attention is elsewhere
5. Peak Distribution Rotate speculative profits back into delegation base Increase $FLR weight — lock in gains as future delegation power
6. RWA Preservation FTSO rewards sustain income through bear market Route surplus to $KAG/$KAU, let delegation yield bridge the cycle
Oracle Discipline: FTSO doesn’t care about market sentiment. It pays for accuracy — every epoch, every cycle, every phase. While the crowd rotates through hype tokens and yield farms that collapse under their own emissions, FTSO delegation grinds forward on protocol-level infrastructure. The providers compete. The delegators compound. The data keeps flowing. Learn the mechanics from Mickey B. Fresh and The DeFi Standard Team, secure through Ledger or Tangem, delegate through Bifrost, and let the oracle do the work.
 
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