> 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 crypto prices to Hyperliquid through a multi-source oracle infrastructure. Index markets are calculated from a basket of constituents; single-coin markets track the aggregated USD spot price of one token.

## Price Sources

### Index Constituents: Pyth Network

Paragon sources index constituent 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)

### Index 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)

### Single-Coin Markets

Single-coin markets such as ANSEM use the coin's aggregated USD spot price directly. They do not use index constituents, supply data, or rebalancing.

## Data Pipeline

```
External Feeds → Validation → Aggregation → Index Calculation (indexes only) → Hyperliquid
```

1. **Collection**: Price data from external feeds, plus supply data where an index methodology requires it
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, or the aggregated USD spot price used directly for a single coin
5. **Delivery**: Price updates posted to Hyperliquid via HIP-3 oracle interface

## Operational Parameters

| Parameter           | Value      | Description                                       |
| ------------------- | ---------- | ------------------------------------------------- |
| Price Updates       | Sub-second | During active markets                             |
| Rebalancing         | Daily      | Constituent weight updates for index markets only |
| 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. For indexes, 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 (not applicable to single coins)      |
| **Prices**         | Price per constituent or single coin, with timestamp                             |
| **Price Sources**  | Which data vendor provided each price (Pyth, exchange feeds)                     |
| **Supply Figures** | Circulating supply per constituent where required by an index methodology        |
| **Supply Vendors** | Which vendor provided each supply figure                                         |
| **Timestamps**     | Exact time of each data point                                                    |
| **Oracle Values**  | Computed index value or aggregated single-coin price, with calculation timestamp |

### Provenance

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

1. Pull prices from the stated sources at the stated timestamps
2. For an index, fetch the same constituent list and applicable supply figures
3. Apply the published aggregation and, where applicable, index formula
4. Arrive at the same oracle value

### Why This Matters

Opaque reference-price 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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