Oracle Quotes Overview

Overview

Oracle Quotes represent a paradigm shift in how oracle data is delivered on Solana, eliminating write locks and reducing costs by 90%. With the new Ed25519 signature verification, Oracle Quotes now require only 485 compute units for single feed verification, making them the most cost-efficient oracle solution on Solana.

🚀 No Data Feed Accounts Required

Unlike traditional oracle solutions, Oracle Quotes require ZERO setup:

❌ No need to create data feed accounts
❌ No need to fund accounts with SOL
❌ No need to manage account permissions
✅ Just fetch a feed hash and start using prices immediately!

Why are Oracle Quotes faster than other oracle solutions?

Traditional Approach (Higher Cost):
Oracle → Feed Account (write) → Your Program (read)
         ↑ Write Lock Required

Oracle Quotes Method (90% Lower Cost):
Oracle → Oracle Quote → Your Program (direct use)
         ↑ No Write Lock!

Key Benefits

Feature

Oracle Quotes (Ed25519)

Traditional Feeds

Transaction Cost

~0.00015 SOL

~0.002 SOL

Update Latency

<1 second

2-10 seconds

Write Locks

None

Required

Setup Time

Instant

5-10 minutes

Parallel Access

Unlimited

Limited

Compute Units

~70 CU

50,000+ CU

How Oracle Quotes Work

The Oracle Quotes method consists of two key components working together:

1. Client-Side Oracle Quote Fetch

import * as sb from "@switchboard-xyz/on-demand";

// Fetch the latest oracle quote with Ed25519 optimization
const [sigVerifyIx, oracleQuote] = await queue.fetchUpdateBundleIx(gateway, crossbar, [
  "0xYOUR_FEED_HASH_HERE"
]);

// Create your program instruction
const updateIx = await program.methods
  .verifyQuote()
  .accounts({
    oracle: oraclePda,
    queue: queue.pubkey,
    // ... other accounts
  })
  .instruction();

// Submit both instructions together
const tx = await sb.asV0Tx({
  connection,
  ixs: [sigVerifyIx, updateIx], // Ed25519 verify + your program
  signers: [wallet],
  lookupTables: [lut],
});

2. On-Chain Signature Verification

Your program receives the Ed25519 instruction and validates the oracle signatures:

3. Ultra-Fast On-Chain Verification

The Ed25519 verification process uses advanced optimizations for minimal compute cost:

use switchboard_on_demand::{
    QuoteVerifier, QueueAccountData, SlotHashes, Instructions
};

// Ed25519 verification with zero-copy parsing and batch validation
let quote = QuoteVerifier::new()
    .slothash_sysvar(&slothashes)
    .ix_sysvar(&instructions)  // Ed25519 instruction parsing
    .clock(parse_clock(&clock))
    .queue(&queue)
    .verify_account(&oracle)   // Single memcmp validates all signatures
    .unwrap();

// Access verified feed data
for feed_info in quote.feeds() {
    msg!("Feed ID: {}, value: {}", feed_info.hex_id(), feed_info.value());
}

Oracle Quote Architecture Deep Dive

Ed25519 Signature Verification Optimizations

The Oracle Quotes system leverages several advanced optimizations:

Batch Signature Validation: All oracle signatures are validated in a single Ed25519 instruction
Zero-Copy Parsing: No memory allocation during verification
Precompiled Operations: Uses Solana's native Ed25519 precompile for maximum efficiency
Optimized Account Layout: Minimal account reads through strategic data organization

Performance Comparison

Operation

Oracle Quotes

Traditional Feeds

Improvement

Signature Verification

485 CU

3,000+ CU

6x faster

Data Access

Direct read

Account + deserialize

4x faster

Total Transaction Cost

~0.00015 SOL

~0.002 SOL

90% cheaper

Security Model

Oracle Quotes maintain the same security guarantees as traditional feeds:

Multi-Oracle Consensus: Requires signatures from multiple independent oracles
Slashable Security: Oracles have economic stake that can be slashed for misbehavior
Freshness Validation: Built-in staleness checks prevent replay attacks
Cryptographic Integrity: Ed25519 signatures ensure data authenticity

Getting Started

1. Quick Start (30 seconds to first price)

# Clone the examples repository
git clone https://github.com/switchboard-xyz/sb-on-demand-examples.git
cd solana

# Get a feed hash from https://explorer.switchboardlabs.xyz/
# Run the Oracle Quotes example
bun run scripts/feeds/runUpdate.ts --feedHash YOUR_FEED_HASH

2. Integration Steps

Install SDK: npm i @switchboard-xyz/on-demand
Add Rust Crate: cargo add switchboard-on-demand
Fetch Oracle Quote: Use fetchUpdateBundleIx() client-side
Verify On-Chain: Use QuoteVerifier in your program
Access Data: Extract verified feed values for your logic

3. Complete Integration Example

// Client-side: Fetch Oracle Quote
const [sigVerifyIx, oracleQuote] = await queue.fetchUpdateBundleIx(
  gateway, crossbar, [feedHash]
);

// Your program instruction
const tradeIx = await program.methods
  .executeSwap(amountIn, minAmountOut)
  .accounts({
    oracle: oraclePda,
    queue: queue.pubkey,
    // ... other accounts
  })
  .instruction();

// Execute atomically
const tx = await sb.asV0Tx({
  connection,
  ixs: [sigVerifyIx, tradeIx],
  signers: [wallet],
});

// Program-side: Verify Oracle Quote
#[program]
pub mod my_dex {
    use super::*;

    pub fn execute_swap(
        ctx: Context<SwapAccounts>, 
        amount_in: u64, 
        min_amount_out: u64
    ) -> Result<()> {
        // Verify oracle quote
        let quote = QuoteVerifier::new()
            .slothash_sysvar(&ctx.accounts.sysvars.slothashes)
            .ix_sysvar(&ctx.accounts.sysvars.instructions)
            .clock(parse_clock(&ctx.accounts.sysvars.clock))
            .queue(&ctx.accounts.queue)
            .verify_account(&ctx.accounts.oracle)?;

        // Get price from verified quote
        let price_feed = quote.feeds().next().unwrap();
        let current_price = price_feed.value();

        // Execute swap with verified price
        let amount_out = calculate_swap(amount_in, current_price);
        require!(amount_out >= min_amount_out, ErrorCode::SlippageExceeded);
        
        // ... swap logic
        Ok(())
    }
}

Real-World Examples

DeFi Lending Protocol

pub fn liquidate_position(ctx: Context<Liquidate>) -> Result<()> {
    // Verify the oracle quote
    let quote = QuoteVerifier::new()
        .slothash_sysvar(&ctx.accounts.sysvars.slothashes)
        .ix_sysvar(&ctx.accounts.sysvars.instructions)
        .clock(parse_clock(&ctx.accounts.sysvars.clock))
        .queue(&ctx.accounts.queue)
        .verify_account(&ctx.accounts.oracle)?;

    // Extract BTC price from the verified quote
    let btc_feed = quote.feeds().next().unwrap(); // Assuming first feed is BTC
    let btc_price = btc_feed.value();

    // Check if position is underwater
    let ltv = calculate_ltv(ctx.accounts.position, btc_price);
    require!(ltv > LIQUIDATION_THRESHOLD, ErrorCode::PositionHealthy);

    // Execute liquidation...
    Ok(())
}

Perpetual DEX

// Fetch multiple price Oracle Quotes for a perps exchange
const [sigVerifyIx, oracleQuote] = await queue.fetchUpdateBundleIx(
  gateway, crossbar, [
    "0xBTC_FEED_HASH",
    "0xETH_FEED_HASH", 
    "0xSOL_FEED_HASH"
  ]
);

const openPositionIx = await perpProgram.methods
  .openPosition(size, leverage)
  .accounts({
    oracle: oraclePda,
    queue: queue.pubkey,
    trader: wallet.publicKey,
    // ... other accounts
  })
  .instruction();

// Execute with minimal latency
const tx = await sb.asV0Tx({
  connection,
  ixs: [sigVerifyIx, openPositionIx],
  signers: [wallet],
  computeUnitPrice: 50_000, // Higher priority for MEV protection
});

Migration from Traditional Feeds

Oracle Quotes are designed to be a drop-in replacement for traditional feeds:

Before (Traditional Feeds)

// Required: Create and fund feed accounts
// Higher compute cost, write locks, slower updates

let feed_account = ctx.accounts.price_feed.load()?;
let price = feed_account.get_result()?.try_into()?;

After (Oracle Quotes)

// No setup required, instant access, 90% lower cost

let quote = QuoteVerifier::new()
    .verify_account(&ctx.accounts.oracle)?;
let price = quote.feeds().next().unwrap().value();

Frequently Asked Questions

Q: Do Oracle Quotes work on all Solana networks? A: Yes! Oracle Quotes work on Mainnet, Devnet, and Testnet with the same API.

Q: Can I batch multiple feeds in one Oracle Quote? A: Yes! You can include multiple feed hashes in a single fetchUpdateBundleIx() call.

Q: What's the maximum number of feeds per Oracle Quote? A: The limit depends on transaction size constraints, but typically 10-20 feeds per quote.

Q: How fresh is the oracle data? A: Oracle Quotes are typically updated within 1 second of price changes, with built-in staleness validation.

Q: Are Oracle Quotes more secure than traditional feeds? A: Yes! Same security model but with additional Ed25519 cryptographic verification and no write lock attack vectors.

Ready to get started? Check out our complete integration examples and start building with Oracle Quotes today!

PreviousEVM NextSurge Overview

Last updated 2 days ago