Role of Oracles, LayerZero & Multisig
Tharwa’s architecture combines cutting-edge yield mechanics with robust infrastructure primitives to ensure security, accuracy, and cross-chain operability.
This page outlines three critical infrastructure layers that power the protocol:
Oracles for pricing and solvency checks
LayerZero for seamless cross-chain stablecoin functionality
Multisig controls for security and operational safeguards
Together, these systems help enforce transparency, decentralization, and institutional-grade protections.
Oracles: Real-Time Data Integrity
Tharwa uses decentralized oracle networks to ensure reliable, tamper-proof asset pricing and protocol behavior.
What Oracles Do:
Feed live prices of thUSD, TRWA, and supported RWAs
Enable secure minting/redemption by verifying current asset values
Power peg defense and liquidation logic
Help validate solvency during audits and rebalancing
Oracle Providers:
Pyth Network for high-frequency data streams
Chainlink for battle-tested, multi-asset price feeds
Each oracle provider has different latency and depth characteristics. By using both, Tharwa gains redundancy, reliability, and broader coverage across asset classes.
Example Use Case:
LayerZero: Multi-Chain thUSD Transfers
thUSD is deployed as an OFT (Omnichain Fungible Token) using LayerZero’s messaging infrastructure. This allows thUSD to move across Ethereum mainnet, L2s, and other supported chains without bridges or wrappers.
Why It Matters:
Enables low-cost thUSD transactions on L2s (Arbitrum, Optimism, etc.)
Seamless liquidity routing between chains
Allows Tharwa vaults, OTC markets, and integrations to operate across ecosystems
Maintains thUSD’s 1:1 backing and traceability across chains
All thUSD movements are secured by LayerZero’s ultra-light client architecture, which verifies message validity without introducing new attack surfaces.
Multisig: Secure Admin & Treasury Control
Until the protocol is fully decentralized, Tharwa operations are guarded by multi-signature wallets (Gnosis Safes) that require multiple parties to approve sensitive actions.
What’s Covered:
thUSD minting/redeeming caps
Vault parameter adjustments
Treasury withdrawals or deployments
Smart contract upgrades or emergency patches
Multisig ensures that no single actor can act unilaterally, and also enforces risk thresholds around protocol movements.
These multisigs will eventually be transitioned to DAO-controlled governance, as sTRWA stakers gain control over protocol levers.
Circuit Breakers & Monitoring
Critical contract functions are paired with circuit breakers to stop execution during abnormal behavior (e.g., price slippage, liquidity crunch, oracle failure). These triggers are monitored 24/7 by off-chain bots and can pause minting, redemption, or vault flows in extreme scenarios.
This setup protects thUSD holders, vault users, and protocol integrity during high-volatility or attack windows.
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