Volatility indices are structurally easy to poison: a thin OTM strike printed once can move an unguarded aggregate by tens of points. The dampener treats any violent push as suspect until a second block agrees with it.
deviation = | P_new − P_last | / P_lastBelow the threshold the push settles at face value. Above it, raw execution halts for that block and the contract settles on a dampened blend instead:
P_settlement = α · P_new + (1 − α) · P_last, α = 0.05- A flash-loan induced print can move settlement by at most 1% of its intended distance in a single block.
- Genuine repricing still propagates: a real move is confirmed block after block and the EMA converges within seconds.
- The dampened state is public. The header pill switches to a chromatic fringe pulse and the analytics page timestamps entry and exit.
- Liquidations initiated while dampened are priced off the dampened value, never the raw push.