> For the complete documentation index, see [llms.txt](https://docs.paragon.trade/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.paragon.trade/markets/crypto-indices/external-pricing.md).

# External Pricing

Paragon delivers accurate, timely index prices to Hyperliquid through a robust multi-source oracle infrastructure.

## Price Sources

### Primary: Pyth Network

Paragon sources prices primarily through a partnership with [Pyth Network](https://pyth.network), a decentralized oracle providing high-frequency price feeds across 100+ blockchains. Pyth aggregates data from institutional-grade market data providers, delivering sub-second updates with broad asset coverage.

→ [Pyth Documentation](https://docs.pyth.network)

### Fallback: Hyperliquid-Inspired Mechanism

When Pyth data is unavailable, Paragon falls back to a Hyperliquid-inspired weighted median across these exchanges:

| Exchange    | Weight |
| ----------- | ------ |
| Binance     | 3      |
| OKX         | 2      |
| Bybit       | 2      |
| Kraken      | 1      |
| Kucoin      | 1      |
| Gate IO     | 1      |
| MEXC        | 1      |
| Hyperliquid | 1      |

→ [Hyperliquid Oracle Documentation](https://hyperliquid.gitbook.io/hyperliquid-docs/hypercore/oracle)

## Data Pipeline

```
Pyth (primary) / Exchange Feeds (fallback) → Validation → Aggregation → Index Calculation → Hyperliquid
```

1. **Collection**: Price and supply data from Pyth (primary) or exchange feeds (fallback)
2. **Validation**: Outlier detection, staleness checks, sanity bounds
3. **Aggregation**: Waterfall fallback across valid sources (planned: weighted median)
4. **Calculation**: Index value computed per methodology
5. **Delivery**: Price updates posted to Hyperliquid via HIP-3 oracle interface

## True Float (Coming Soon)

Circulating supply data from industry vendors is often gatekept, opaque, and inconsistent-inaccuracies that compound across every downstream dependency built on this data. Paragon is building an open-source "True Float" methodology: a transparent, verifiable approach to circulating supply that anyone can audit and replicate.

Circulating supply is sourced from five industry vendors. Supply figures are aggregated using a median approach with outlier and anomaly detection. True Float will formalize this multi-vendor aggregation with transparent, auditable methodology.

For how these supply figures feed each index, see [Crypto Index Methodology](/markets/specifications.md#crypto-index-methodology).

## Operational Parameters

| Parameter           | Value      | Description                    |
| ------------------- | ---------- | ------------------------------ |
| Price Updates       | Sub-second | During active markets          |
| Rebalancing         | Daily      | Constituent weight updates     |
| Methodology Reviews | Quarterly  | Or as needed                   |
| Uptime Target       | 99.99%     | High availability commitment   |
| Failover            | Automatic  | Backup data source fallback    |
| Monitoring          | 24/7       | Alerting and incident response |

## Transparency & Independent Verification

Market participants should be able to independently replicate and verify oracle prices. All inputs required to reconstruct index values from scratch are available on request. We plan to make this data publicly accessible via a hosted data feed (S3) or published on-chain (EVM).

### Data Available on Request

| Data Point         | Description                                                  |
| ------------------ | ------------------------------------------------------------ |
| **Constituents**   | Full list of assets included in each index                   |
| **Prices**         | Price per constituent with timestamp                         |
| **Price Sources**  | Which data vendor provided each price (Pyth, exchange feeds) |
| **Supply Figures** | Circulating supply per constituent                           |
| **Supply Vendors** | Which vendor provided each supply figure                     |
| **Timestamps**     | Exact time of each data point                                |
| **Index Values**   | Computed index value with calculation timestamp              |

### Provenance

Every data point includes its source attribution, allowing full traceability from raw inputs to final index value. This means anyone can:

1. Fetch the same constituent list
2. Pull prices from the stated sources at the stated timestamps
3. Pull supply figures from the stated vendors
4. Apply the published formula
5. Arrive at the same index value

### Why This Matters

Opaque index calculations create trust dependencies. By publishing complete input data with provenance, Paragon enables trustless verification-you don't have to take our word for it.


---

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