## A Look at the Sovryn Engine: The Core Technology Stack
Community Call #7 provided the community with its first high-level overview of the **Sovryn technology stack**. The core developers outlined the key components that power the decentralized application, focusing on the smart contracts and the essential role of price oracles.
### The Smart Contract Architecture
The team explained that Sovryn is not a single, monolithic smart contract, but a system of interconnected contracts, each with a specific job. This modular design is more secure and easier to upgrade over time. The key modules discussed were:
* **The Protocol Contract:** The central contract that acts as a registry and orchestrates interactions between all other parts of the system.
* **The AMM Converter:** The smart contract that contains the logic for the Automated Market Maker, facilitating permissionless swaps.
* **The Lending Pool Contracts:** The contracts that handle deposits from lenders and loans to borrowers (margin traders).
* **The Staking Contract:** The contract that manages the staking of SOV tokens and calculates Voting Power for governance.
### The Critical Role of Oracles
A significant part of the call was dedicated to explaining the importance of **oracles**. Smart contracts on the blockchain cannot access external data on their own. An oracle is a service that feeds real-world information, such as the current price of Bitcoin, onto the blockchain in a secure way.
This price data is absolutely critical for Sovryn’s operation. It is used to:
* Determine if a margin trading position is under-collateralized and needs to be liquidated.
* Calculate the value of assets in the lending pools.
* (In the future) Price assets for perpetual swaps and the Zero stablecoin protocol.
The team explained their strategy of using a decentralized oracle network (like Chainlink) to ensure this price data is tamper-proof and highly reliable. A faulty or manipulated oracle is one of the biggest security risks in DeFi, and the team made it clear that they were adopting a security-first approach by using the industry’s most robust solutions.