Oracles

Edge and csUSD both rely on the cSigma Asset Oracle to ensure all deposits, withdrawals, and portfolio valuations are priced transparently and accurately. The oracle is designed to track total assets under management (AUM) for each vault or pool, updating exchange rates so that users always interact with the most accurate values.

How It Works

The cSigma Oracle continuously calculates the net asset value (NAV) for each pool and vault by combining:

  • Reserve balances (USDC, USDT held in the vault or pool)

  • Deployed capital (funds lent to institutional borrowers)

  • Accrued interest on outstanding loans

The Oracle updates AUM and exchange rates in two ways:

  1. Real-time updates triggered whenever:

    • Borrowers make repayments

    • New funds are deployed

    • A deposit or withdrawal is initiated

    • The Fund Manager rebalances capital between reserves and deployed assets

  2. Scheduled updates on a daily cycle to checkpoint AUM values.

For Edge Pools, updates apply individually to each ERC-4626 pool. For csUSD, updates are aggregated across all ERC-7575 sub-vaults to calculate the unified csUSD price.

Why the Oracle Matters

The Oracle plays a critical role in both systems:

  • Deposits / Minting – Determines how many LP tokens (Edge Pools) or csUSD (csUSD Vault) a user receives for their deposit.

  • Withdrawals / Burning – Determines how much USDC or USDT a user receives when redeeming.

  • Yield Tracking – Enables real-time yield accrual through rising token exchange rates.

  • Portfolio Transparency – Displays accurate AUM and asset breakdowns to users.

Exchange Rate Calculations

Edge Pools (ERC-4626)

  • Exchange Rate (Deposit) = totalSupply / totalAssets

  • Exchange Rate (Withdraw) = totalAssets / totalSupply

  • totalAssets = reserveBalance + assetsUnderManagement

csUSD Vault (ERC-7575)

  • A single unified exchange rate is used for both deposits and withdrawals: Exchange Rate (csUSD) = totalAssets / totalSupply

  • totalAssets = Total reserveBalance (USD) + Total assetsUnderManagement (USD).

By combining real-time recalculations with daily checkpoints, the cSigma Oracle ensures that all interactions in Edge and csUSD are fair, transparent, and based on the most current asset values.

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