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European settlement and oracle agreement

Problem​

A business is exposed to the rate on the day it pays. A contract that pays on any touch of the strike pays for moves that reverse, costs more, and needs continuous price monitoring on chain. Any single price feed is also a single point of failure.

Approach​

  • Only the rate at or after expiry counts.
  • Registered operators submit rates per position; a rate is accepted when at least 2 fresh submissions agree within 1%, and the agreed rate is their average. Any disagreement clears the round.
  • The pool accepts the rate only for the position's own expiry and within 0.5× to 2× the purchase spot.
  • Settlement is permissionless and takes no price argument.

Why​

  • Matches how businesses actually incur currency cost.
  • Cheaper protection than touch-style contracts.
  • One faulty submission cannot settle a contract; nobody can choose the settlement rate.

Trade-offs​

  • Settlement waits for agreement. Data problems delay settlement rather than settle on doubtful data.