Design a time-weighted average price (TWAP) oracle aggregator for stable fractional asset pricing

[Damola-Sodiq]

Description

Build an on-chain oracle module that maintains a rolling window of historical asset prices, returning a Time-Weighted Average Price (TWAP) to mitigate flash loan manipulation.

Architecture & Context

Relying on instantaneous spot prices for fractional token swaps exposes the protocol to devastating flash loan attacks. A TWAP oracle records cumulative prices across multiple ledgers, smoothing out extreme volatility and ensuring true market pricing.

Technical Requirements

• Store cumulative price ticks inside Soroban instance storage using efficient ring buffers.
• Calculate the TWAP accurately by dividing the difference in cumulative ticks by the time delta.
• Implement a circuit breaker that halts pricing if updates become excessively stale.

Acceptance Criteria

• The TWAP value correctly resists single-block price manipulation.
• The ring buffer prevents infinite storage growth over time.
• The contract gracefully halts execution if oracle data is manipulated or missing.

[Preciousuche]

Hi, I’d like to work on this issue.

I have experience with smart contract development, blockchain data structures, and Git-based open-source collaboration. The design of a robust time-weighted average price (TWAP) oracle is critical for reliable pricing, and I’d be excited to contribute.

My implementation plan is to:

Review the existing pricing architecture and oracle interfaces.
Design a TWAP aggregation mechanism that accurately computes time-weighted prices while minimizing susceptibility to short-term market manipulation.
Ensure the oracle integrates cleanly with the stable fractional asset pricing workflow.
Write comprehensive unit and integration tests covering normal operation, edge cases, and invalid inputs.
Document the design decisions and ensure the implementation follows the project’s coding standards.

I’ll provide regular progress updates and submit a clean, well-tested pull request for review. Thank you for considering my application.

[grantfox-oss]

🦊 GrantFox — @Preciousuche has been assigned to this issue as part of the Official Campaign | FWC26 campaign!

Next steps:

1. Open a Pull Request referencing this issue (e.g., Closes #481)
2. Your PR will be reviewed by the Sahara-Pay maintainers

Good luck! Track your progress on GrantFox.

[grantfox-oss]

🎉 This issue has been marked as completed on GrantFox as part of the Official Campaign | FWC26 campaign!

@Preciousuche's PR #493 was approved and merged by @Damola-Sodiq.

🏆 @Preciousuche: You earned 35 FoxPoints for this contribution! Your current tier: Explorer (366 total points). Track your full progress on GrantFox.

👏 Great work, @Preciousuche! Keep contributing to Sahara-Pay.