# Overview

The Oracle Architecture is a core component of Multistake’s safety model. Its primary role is to validate all state reported by external execution environments before that state is permitted to influence `totalAssets()`, net asset value (NAV), or any ERC-4626 conversion function. Because zkSync serves as the canonical accounting and settlement domain, the oracle layer provides defensible confirmation that externally generated execution state accurately reflects the values being reconciled into the vault.

This layer is intentionally conservative. Any state that cannot be independently validated is excluded from accounting. The absence of valid data cannot inflate NAV, distort share pricing, or introduce synthetic liquidity. The oracle system therefore functions as a strict safety boundary between external execution and internal accounting.

All execution environments operate independently and report position values, balances, and realized profit and loss. These reports are treated as untrusted inputs and must be validated prior to inclusion.

The oracle layer ensures that:

* Reported strategy values correspond to verifiable on-chain state.
* Pricing inputs are consistent with trusted reference sources and time-weighted mechanisms.
* Auxiliary assets (e.g., liquidity positions, reward tokens, derivative instruments) are correctly valued.
* Strategy health and risk flags are enforced.
* Malfunctioning or degraded execution environments are safely excluded from accounting.

The oracle layer represents the protocol’s primary defense against incorrect reporting — whether caused by stale data, operational faults, or adversarial behavior — preserving accounting integrity and solvency guarantees.


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