This feed is responsible for passing price information into the protocol. It uses chainlink price feeds to get the price of the liquidity pool's underlying asset. By calling getNormalizedRate(underlying, strike) a user can get the price of the underlying in terms of the strike in e18 decimals. Price feeds can be added by governance. The chainlink price is refused if the price returned is 0 or if the price has not been updated after an hour. It also makes sure the L2 sequencer is up and running to avoid any sequencer risk.
This feed is responsible for passing volatility smiles to the protocol so that options can be priced and valued on chain. The data for volatility smiles is received from deribit but this is very likely to change as the protocol develops. For more information refer to Volatility and Pricing.