diff --git a/contracts/oracles/ChainlinkOracle.sol b/contracts/oracles/ChainlinkOracle.sol
index 2d7505e3..13108e73 100755
--- a/contracts/oracles/ChainlinkOracle.sol
+++ b/contracts/oracles/ChainlinkOracle.sol
@@ -115,7 +115,7 @@ contract ChainlinkOracle is AccessControlledV8, OracleInterface {
      * @param asset Address of the asset
      * @return Price in USD from Chainlink or a manually set price for the asset
      */
-    function getPrice(address asset) public view returns (uint256) {
+    function getPrice(address asset) public view virtual returns (uint256) {
         uint256 decimals;
 
         if (asset == NATIVE_TOKEN_ADDR) {
diff --git a/contracts/oracles/SequencerChainlinkOracle.sol b/contracts/oracles/SequencerChainlinkOracle.sol
new file mode 100644
index 00000000..4ee730b7
--- /dev/null
+++ b/contracts/oracles/SequencerChainlinkOracle.sol
@@ -0,0 +1,45 @@
+// SPDX-License-Identifier: MIT
+pragma solidity 0.8.13;
+
+import { ChainlinkOracle } from "./ChainlinkOracle.sol";
+import { AggregatorV3Interface } from "@chainlink/contracts/src/v0.8/interfaces/AggregatorV3Interface.sol";
+
+/**
+    @title Sequencer Chain Link Oracle
+    @notice Oracle to fetch price using chainlink oracles on L2s with sequencer
+*/
+contract SequencerChainlinkOracle is ChainlinkOracle {
+    /// @notice L2 Sequencer feed
+    /// @custom:oz-upgrades-unsafe-allow state-variable-immutable
+    AggregatorV3Interface public immutable sequencer;
+
+    /// @notice L2 Sequencer grace period
+    uint256 public constant GRACE_PERIOD_TIME = 3600;
+
+    /**
+        @notice Contract constructor
+        @param _sequencer L2 sequencer
+        @custom:oz-upgrades-unsafe-allow constructor
+    */
+    constructor(AggregatorV3Interface _sequencer) ChainlinkOracle() {
+        require(address(_sequencer) != address(0), "zero address");
+
+        sequencer = _sequencer;
+    }
+
+    /// @inheritdoc ChainlinkOracle
+    function getPrice(address asset) public view override returns (uint) {
+        if (!isSequencerActive()) revert("L2 sequencer unavailable");
+        return super.getPrice(asset);
+    }
+
+    function isSequencerActive() internal view returns (bool) {
+        // answer from oracle is a variable with a value of either 1 or 0
+        //  0: The sequencer is up
+        //  1: The sequencer is down
+        // startedAt: This timestamp indicates when the sequencer changed status
+        (, int256 answer, uint256 startedAt, , ) = sequencer.latestRoundData();
+        if (block.timestamp - startedAt <= GRACE_PERIOD_TIME || answer == 1) return false;
+        return true;
+    }
+}
diff --git a/deploy/1-deploy-oracles.ts b/deploy/1-deploy-oracles.ts
index 6259c598..ab176c20 100644
--- a/deploy/1-deploy-oracles.ts
+++ b/deploy/1-deploy-oracles.ts
@@ -4,6 +4,8 @@ import { HardhatRuntimeEnvironment } from "hardhat/types";
 
 import { ADDRESSES } from "../helpers/deploymentConfig";
 
+const ARBITRUM_SEQUENCER = "0xFdB631F5EE196F0ed6FAa767959853A9F217697D";
+
 const func: DeployFunction = async function ({ getNamedAccounts, deployments, network }: HardhatRuntimeEnvironment) {
   const { deploy } = deployments;
   const { deployer } = await getNamedAccounts();
@@ -62,21 +64,39 @@ const func: DeployFunction = async function ({ getNamedAccounts, deployments, ne
     },
   });
 
-  await deploy("ChainlinkOracle", {
-    contract: network.live ? "ChainlinkOracle" : "MockChainlinkOracle",
-    from: deployer,
-    log: true,
-    deterministicDeployment: false,
-    args: [],
-    proxy: {
-      owner: proxyOwnerAddress,
-      proxyContract: "OptimizedTransparentProxy",
-      execute: {
-        methodName: "initialize",
-        args: network.live ? [accessControlManagerAddress] : [],
+  if (network.name === "arbitrum") {
+    await deploy("SequencerChainlinkOracle", {
+      contract: "SequencerChainlinkOracle",
+      from: deployer,
+      log: true,
+      deterministicDeployment: false,
+      args: [ARBITRUM_SEQUENCER],
+      proxy: {
+        owner: proxyOwnerAddress,
+        proxyContract: "OptimizedTransparentProxy",
+        execute: {
+          methodName: "initialize",
+          args: [accessControlManagerAddress],
+        },
       },
-    },
-  });
+    });
+  } else {
+    await deploy("ChainlinkOracle", {
+      contract: network.live ? "ChainlinkOracle" : "MockChainlinkOracle",
+      from: deployer,
+      log: true,
+      deterministicDeployment: false,
+      args: [],
+      proxy: {
+        owner: proxyOwnerAddress,
+        proxyContract: "OptimizedTransparentProxy",
+        execute: {
+          methodName: "initialize",
+          args: network.live ? [accessControlManagerAddress] : [],
+        },
+      },
+    });
+  }
 
   // Skip deployment if chain is not BNB chain
   if (networkName === "bsctetnet" || networkName === "bscmainnet") {
diff --git a/hardhat.config.ts b/hardhat.config.ts
index fb27ff39..ab7f3949 100644
--- a/hardhat.config.ts
+++ b/hardhat.config.ts
@@ -130,6 +130,15 @@ const config: HardhatUserConfig = {
       live: true,
       accounts: process.env.DEPLOYER_PRIVATE_KEY ? [`0x${process.env.DEPLOYER_PRIVATE_KEY}`] : [],
     },
+    arbitrum: {
+      url: "https://arbitrum.llamarpc.com/",
+      chainId: 42161,
+      live: true,
+      timeout: 1200000,
+      accounts: {
+        mnemonic: process.env.MNEMONIC || "",
+      },
+    },
   },
   gasReporter: {
     enabled: process.env.REPORT_GAS !== undefined,
diff --git a/test/SequencerChainlinkOracle.ts b/test/SequencerChainlinkOracle.ts
new file mode 100644
index 00000000..a0ad0045
--- /dev/null
+++ b/test/SequencerChainlinkOracle.ts
@@ -0,0 +1,73 @@
+import { FakeContract, MockContract, smock } from "@defi-wonderland/smock";
+import chai from "chai";
+import { parseUnits } from "ethers/lib/utils";
+import { ethers } from "hardhat";
+
+import { AggregatorV3Interface, SequencerChainlinkOracle, SequencerChainlinkOracle__factory } from "../typechain-types";
+import { getTime } from "./utils/time";
+
+const { expect } = chai;
+chai.use(smock.matchers);
+
+describe("SequencerChainlinkOracle", () => {
+  let sequencerChainlinkOracle: MockContract<SequencerChainlinkOracle>;
+  let sequencerFeed: FakeContract<AggregatorV3Interface>;
+  const BNB_ADDR = "0xbBbBBBBbbBBBbbbBbbBbbbbBBbBbbbbBbBbbBBbB";
+  const GRACE_PERIOD = 3600;
+  const expectedPrice = parseUnits("1", 18);
+  before(async () => {
+    await ethers.provider.send("evm_mine", []); // Mine a block to ensure provider is initialized
+    sequencerFeed = await smock.fake("AggregatorV3Interface");
+    const sequencerChainlinkOracleFactory = await smock.mock<SequencerChainlinkOracle__factory>(
+      "SequencerChainlinkOracle",
+    );
+    sequencerChainlinkOracle = await sequencerChainlinkOracleFactory.deploy(sequencerFeed.address);
+    // configure a hardcoded price just for the sake of returning any value
+    await sequencerChainlinkOracle.setVariable("prices", {
+      "0xbBbBBBBbbBBBbbbBbbBbbbbBBbBbbbbBbBbbBBbB": expectedPrice, // native-token address hardcoded price
+    });
+  });
+  it("Should revert if sequencer is down", async () => {
+    sequencerFeed.latestRoundData.returns({
+      roundId: 0, // arbitraty value (not used in logic)
+      answer: 1, // (1 - for 'sequencer down')
+      startedAt: 1, // block.timestamp - startedAt should be > 3600 (GRACE_PERIOD)
+      updatedAt: 1, // arbitraty value (not used in logic)
+      answeredInRound: 1, // arbitraty value (not used in logic)
+    });
+
+    await expect(sequencerChainlinkOracle.getPrice(BNB_ADDR)).to.be.revertedWith("L2 sequencer unavailable");
+  });
+  it("Should revert if sequencer is up, but GRACE_PERIOD has not passed", async () => {
+    sequencerFeed.latestRoundData.returns({
+      roundId: 0, // arbitraty value (not used in logic)
+      answer: 1, // (1 - for 'sequencer down')
+      startedAt: (await getTime()) - GRACE_PERIOD, // block.timestamp - startedAt should be = 3600 (GRACE_PERIOD)
+      updatedAt: 1, // arbitraty value (not used in logic)
+      answeredInRound: 1, // arbitraty value (not used in logic)
+    });
+
+    await expect(sequencerChainlinkOracle.getPrice(BNB_ADDR)).to.be.revertedWith("L2 sequencer unavailable");
+
+    sequencerFeed.latestRoundData.returns({
+      roundId: 0, // arbitraty value (not used in logic)
+      answer: 1, // (1 - for 'sequencer down')
+      startedAt: await getTime(), // block.timestamp - startedAt should be < 3600 (GRACE_PERIOD)
+      updatedAt: 1, // arbitraty value (not used in logic)
+      answeredInRound: 1, // arbitraty value (not used in logic)
+    });
+
+    await expect(sequencerChainlinkOracle.getPrice(BNB_ADDR)).to.be.revertedWith("L2 sequencer unavailable");
+  });
+  it("Should return price", async () => {
+    sequencerFeed.latestRoundData.returns({
+      roundId: 0, // arbitraty value (not used in logic)
+      answer: 0, // (0 - for 'sequencer up')
+      startedAt: 1, // block.timestamp - startedAt should be > 3600 (GRACE_PERIOD)
+      updatedAt: 1, // arbitraty value (not used in logic)
+      answeredInRound: 1, // arbitraty value (not used in logic)
+    });
+
+    expect(await sequencerChainlinkOracle.getPrice(BNB_ADDR)).to.equal(expectedPrice);
+  });
+});