💹Price Feed & RMM

A hybrid off-chain and on-chain pricing system that ensures accurate, real-time market data while maintaining deep liquidity through our Reflective Market Maker (RMM) mechanism.

Introduction

Our pricing infrastructure is underpinned by a hybrid off-chain and on-chain architecture, combining price publishers with our proprietary Reflective Market Maker (RMM) system. This ensures accurate real-time pricing and efficient liquidity provision.

1. Price Publishers

   • Price publishers continuously aggregate chart and orderbook data from leading centralized exchanges (CEXs) such as Binance, utilizing WebSocket streams and REST APIs for low-latency data retrieval.

   • The collected data is normalized and validated off-chain to ensure consistency, with updates propagated at sub-second intervals to maintain alignment with global market conditions.

2. Reflective Market Maker (RMM)

   • The RMM system mirrors CEX orderbooks on-chain, leveraging aggregated data to replicate depth and pricing. This mirroring process can be described as the following mapping function:

$$M: O_{CEX} \rightarrow O_{Onchain}$$

where:

• ( O_{CEX} ) represents the CEX orderbook,

• ( O_{Onchain} ) is our on-chain representation.

• On-chain, RMM executes automatic market-making calculations to adjust liquidity and depth, using algorithms such as constant product market makers (CPMM) or dynamic pricing models. Liquidity provision is determined by:

$$L = k \cdot P \cdot D$$

where:

• ( L ) is liquidity,

• ( P ) is price,

• ( D ) is depth,

• ( k ) is a constant determined by the mirrored orderbook.

• These calculations are implemented in smart contracts, ensuring transparency and trustlessness, while off-chain nodes handle computational load to maintain efficiency.

1. Price Feed Generation

$$P = \sum_{i=1}^{n} w_i \cdot P_i$$

where:

• ( P_i ) is the price from exchange,

• ( i ), ( w_i ) is the weight for that exchange (with ( \sum w_i = 1 ) ),

• ( n ) is the number of CEXs,

$$w_i = F(L_i, V_i, C_i)$$

where:

• ( w_i ) is the weight,

• ( L_i ) is the function of liquidity,

• ( V_i ) is the volume,

• ( C_i ) is the credibility factor.

This ensures that exchanges with higher liquidity, greater trading activity, and stronger trustworthiness exert more influence on the final price, optimizing both precision and stability in dynamic market conditions.

Key Benefits

• Real-Time Market Data: Ensures pricing consistency with leading CEXs.

• Deep Liquidity: Mirrors CEX orderbook depth, reducing slippage.

• Trustless Execution: On-chain calculations ensure verifiable pricing.

• Reduced Oracle Risks: Eliminates reliance on traditional oracles, minimizing data manipulation and downtime risks.

By eliminating traditional oracle dependencies, this system provides developers with a reliable price feed for high-stakes trading applications. The RMM’s on-chain execution ensures that pricing data remains immutable and verifiable, enhancing trust for integrated decentralized applications.