.svg){kind=spacer}
Details
- Chainlink has launched State Pricing, a methodology designed to provide more accurate and reliable price feeds for assets primarily traded on decentralized exchanges (DEXs) with minimal centralized exchange (CEX) activity.
- The system is available through both Data Feeds and Data Streams, supporting key tokens including wstETH, tBTC, and GHO, and is already integrated by major DeFi protocols such as Aave, Lido, GMX, and Curve.
- State Pricing employs dynamic pool selection, hybrid weighting methods, and onchain data queries to aggregate and filter prices from multiple DEX liquidity pools, incorporating outlier detection for manipulation resistance.
- This approach complements Chainlink’s existing VWAP and LWBA methodologies by addressing assets with low CEX volume but robust DEX liquidity, overcoming the limitations of traditional pricing models.
- With initial focus on liquid staking tokens, tokenized real-world assets, and tokens with fragmented liquidity, State Pricing aims to bolster accurate collateral valuation and support the integration of a wider range of DeFi assets.
Impact
Chainlink’s State Pricing fills a key gap by enabling DeFi protocols to adopt and securely price assets that lack strong CEX trading, thus broadening the collateral options and boosting market resilience. Early adoption by prominent protocols like Aave and Lido underscores growing trust in decentralized pricing. As DeFi evolves, this advancement positions Chainlink as an essential data provider supporting the ecosystem’s scalability and diversification.
