> For the complete documentation index, see [llms.txt](https://docs.lifinity.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.lifinity.io/dex/oracle.md).

# Oracle

One of the main differentiators of Lifinity's DEX is its use of an oracle as the key pricing mechanism rather than relying primarily on a pool's balance of assets. This eliminates the reliance on arbitrageurs to adjust the price, reversing impermanent loss into profit for the market maker.

Lifinity uses its own custom oracle to ensure the highest accuracy with the lowest latency. We only trade when the oracle has successfully updated in the current slot and the confidence interval is sufficiently narrow, making our DEX extremely difficult to front run.