> For the complete documentation index, see [llms.txt](https://paragon-protocol.gitbook.io/paragon-protocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://paragon-protocol.gitbook.io/paragon-protocol/p10-index/pricing-and-oracles.md).

# Pricing & Oracles

### 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* outdated data is rejected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.


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