Methodology

v0.1

Market Price

All market prices are measured at the block immediately before the transaction.

WETH/USDC Price:

The median price from three designated WETH/USDC liquidity pools, cross-referenced against an oracle reference. Used directly for WETH/USDC transactions or as a reference when pricing other token pairs.

All other prices may use up to three methods:

Direct-Pool Price:

The midpoint price from the deepest qualifying liquidity pool that trades the input and output tokens directly.

WETH-Derived Price:

The implied price linking the input and output tokens together through WETH. It is calculated from the midpoint price of the deepest qualifying token/WETH pool for each applicable token, cross-referenced against the WETH/USDC price method. For example, AAA/WETH and WETH/BBB can be combined to derive an AAA/BBB price. Used to corroborate a direct-pool price, or provide a fallback when no direct-pool price is available.

Oracle Reference:

An independent reference price calculated from external price feeds (Chainlink) for the input and output tokens. Used to corroborate liquidity-based prices within a tolerance of 50 bps, or 0.50%. Oracle reference is never used to calculate Market Price.

When at least 2/3 methods agree, prices are Verified. When only the direct-pool method or WETH-derived method are available, prices are Estimated.