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On this page
  • BTC/USD Spot oracle:
  • WBTC/BTC Spot oracle:
  • WBTC/USD Anchor Price oracle:
  • The Algorithm of WBTC/USD Max and Min Price:
  • Price Checking Mechanism:
  • Conclusion:
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  1. RISK MANAGEMENT
  2. Oracle

WBTC

Learn more about f(x) V2 oracle mechanism.

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Last updated 2 months ago

The f(x) 2.0 price oracle mechanism for WBTC/USD combines multiple data sources, including Chainlink, Uniswap and Curve, to calculate spot prices and anchor prices. It defines Max and Min Price for WBTC/USD based on these sources and uses a governance-adjustable threshold (default 2%) to decide whether to rely on the Anchor Price or the Max/Min Price for operations like rebalancing, minting, or redeeming. This ensures accurate and stable pricing while accommodating market fluctuations. Below is the detailed breakdown of the WBTC Spot Price Oracle Mechanism:

BTC/USD Spot oracle:

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WBTC/BTC Spot oracle:

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WBTC/USD Anchor Price oracle:

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The Algorithm of WBTC/USD Max and Min Price:

  • Max: WBTC/USD Price=Max(Anchor Price, [WBTC/BTC Spot Max Price ]*[BTC/USD Spot Max Price ])

  • Min: WBTC/USD Price=Min(Anchor Price, [WBTC/BTC Spot Min Price ]*[BTC/USD Spot Min Price ])

Price Checking Mechanism:

  • Anchor Price is used, while the price difference between Anchor Price and Max/Min Price exceeds the threshold

  • The threshold is a governed parameter, 2% in default

Conclusion:

  • Min WBTC/USD Price is used for Open/Close of xPOSITION risk control, Rebalance and Liquidation if the price difference between Anchor Price and Min Price doesn’t exceed the threshold. Anchor Price is used otherwise.

  • Max WBTC/USD Price is used for Redeeming fxUSD if the price difference between Anchor Price and Max Price doesn’t exceed the threshold. Anchor Price is used otherwise.

🧭
Chainlink BTC/USD Spot
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Uniswap V3 WBTC/ETH 0.3% Spot
Uniswap V3 USDC/ETH 0.05% Spot
Chainlink WBTC/BTC Spot
Chainlink WBTC/BTC Spot
Chainlink BTC/USD Spot