Pricing & Oracles

Paragon uses a multi-layer pricing system to validate execution, protect users, and ensure reliable on-chain valuation. Pricing is a core security layer used across swaps, liquidity, index products.

What Pricing Is Used For

Paragon pricing supports:

---

Swaps & Routing

• validates execution routes

• enforces minimum output conditions

• prevents invalid pricing

---

Pools & APR

• calculates TVL

• normalizes asset values

• displays consistent APR

---

Farming

• tracks rewards accurately

• ensures consistent valuation

---

Index Products (P10)

• computes NAV

• validates mint and redeem

• supports rebalancing

---

👉 Pricing is not just UI — it is part of protocol safety.

---

Source of Truth (3 Layers)

Paragon combines three pricing layers:

---

1. External Oracles (Primary)

• Chainlink (primary source)

• Pyth / Redstone (secondary)

Used for:

• major assets

• stablecoins

• index valuation

---

2. On-Chain TWAP (Safety Layer)

• time-weighted average price

• typically 10–30 minute window

Used for:

• cross-checking oracle values

• fallback validation

---

3. AMM Spot Price (Routing Only)

• real-time pool pricing

• used for execution routing

---

👉 Spot prices are never used alone for settlement validation.

---

Core Validation Rules

Any price used for value transfer must pass:

• freshness checks

• deviation limits

• cross-validation (oracle vs TWAP)

---

👉 If validation fails:

• execution is restricted or blocked

---

Safeguards

Paragon enforces multiple protections:

---

Freshness Checks

• outdated data is rejected

---

Deviation Filters

• large price changes are ignored

• unless confirmed across sources

---

Cross-Validation

• oracle values must align with TWAP

• prevents manipulation

---

Stablecoin Guard

• detects depegs

• adjusts behavior automatically

---

Global Protection Mode

If multiple price sources fail:

• sensitive actions are paused

• swaps remain available

• system enters a restricted mode

---

Pricing in Swaps

Pricing is used to:

• validate routes

• enforce minimum output (minOut)

• prevent invalid execution

---

👉 Oracles do not determine swap prices — they act as a validation layer.

---

Pricing for P10

P10 uses oracle pricing to compute NAV.

---

NAV Formula

NAV = Σ (weight × price)

---

Mint & Redeem

• mint price = NAV + fee

• redeem price = NAV − fee

---

👉 Fully transparent and verifiable.

---

Index Pricing Model

• multiple oracle sources

• median-based pricing

• outlier filtering

---

If validation fails:

• minting pauses

• redemption remains active

---

Architecture Overview

• OracleHub → manages and validates price feeds

• Flow Settlement → validates execution conditions

• Index Oracle → computes NAV

• Index Contracts → enforce mint / redeem logic

---

Manipulation Resistance

Paragon protects against:

---

Flashloan Attacks

• TWAP windows

• oracle cross-checks

---

Price Manipulation

• deviation filters

• multi-source validation

---

Execution Abuse

• minimum output enforcement

• route validation

---

Circuit Breakers

• minting pauses if unsafe

• redemption remains available

---

Testnet Setup

Current configuration:

• mock oracle feeds

• configurable thresholds

• synthetic P10

---

What Users See

On Swap

• execution validation

• protected routing

• savings indicator

---

On P10

• NAV

• composition

• oracle status

---

On Pools

• APR based on normalized pricing

---

TL;DR

• Chainlink = primary source

• Pyth / Redstone = secondary

• TWAP = safety layer

• strict validation rules

• minting pauses if unsafe

• redemption remains available

---

Paragon pricing acts as a validation layer that protects execution, liquidity, and capital across the protocol.