Price Oracles in Liquity
Liquity heavily depends on the ETH-USD price for many of its operations. Since LUSD is pegged to the US dollar, Liquity needs the dollar price of ETH to calculate Troves’ individual collateral ratios (ICR) and the total system collateral ratio (TCR). These ratios determine which Trove actions are allowed, when Troves can be liquidated, and when Recovery Mode kicks in.
Thus, Liquity requires a current and accurate ETH price, freshly fetched in each operation that uses it.