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Update observer node guide
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dineshpinto committed Jun 18, 2024
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6 changes: 3 additions & 3 deletions docs/ftso/0-overview.mdx
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Expand Up @@ -44,9 +44,9 @@ The FTSOv2 architecture consists of four key components:

2. **Incremental Delta Update:** Selected data providers submit new feed updates as fixed incremental deltas applied to the previous feed value. This maintains reliable and continuous updates, ensuring integrity and accuracy.

3. **Anchoring to Scaling Feeds:** Scaling feeds, which employ a full commit-reveal process across all data providers, act as anchors to ensure long-term accuracy.
3. **Volatility Incentive Mechanism:** To handle periods of high market volatility, FTSOv2 introduces volatility incentives, temporarily increasing the sample size of selected data providers in exchange for a fee. This permissionless mechanism ensures a faster response to significant price movements.

4. **Volatility Incentive Mechanism:** To handle periods of high market volatility, FTSOv2 introduces volatility incentives, temporarily increasing the sample size of selected data providers in exchange for a fee. This permissionless mechanism ensures a faster response to significant price movements.
4. **Anchoring to Scaling Feeds:** Scaling feeds, which employ a full commit-reveal process across all data providers, act as anchors to ensure long-term accuracy.

### Verifiably Random Selection

Expand Down Expand Up @@ -78,6 +78,6 @@ From statistical analysis, FTSOv2's mechanism is capable of capturing over 99% o

Typically, the expected sample size is one. With volatility incentives, this sample size is temporarily increased, allowing for more updates and quicker responses to large price movements. Importantly, only the expected sample size increases, not the actual sample size, which further helps protect the protocol against various statistical attacks.

### Anchoring to Scaling Feeds
### Anchoring to Scaling feeds

FTSOv2 is designed to be statistically self-correcting. To further ensure the long-term accuracy of the feeds, FTSOv2 uses the [Scaling](./scaling/overview) feeds as anchors. Scaling feeds utilize a full commit-reveal process across all data providers with an inter-quartile range (IQR) band calculation, and update once every voting epoch (i.e. 90 seconds). Data providers are only rewarded if the FTSOv2 feeds converge to the Scaling feeds every voting epoch.
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