Oracles

Paragon operates a dedicated oracle network to deliver accurate, timely index prices to Hyperliquid.

Summary

Paragon's oracle infrastructure aggregates price data from centralized exchanges, decentralized exchanges, and multiple data providers to produce manipulation-resistant index values. The system maintains sub-second update frequency with 99.99% uptime through redundant, geographically distributed infrastructure.

Oracle Architecture

Price Aggregation

The Paragon oracle aggregates price data from multiple sources:

• Major centralized exchanges (Binance, Coinbase, OKX, etc.)

• Decentralized exchanges and on-chain price feeds

• Multiple data providers for redundancy

Prices are validated, weighted, and combined to produce a robust index value resistant to manipulation or single-source failures.

Data Pipeline

Source Feeds → Validation → Aggregation → Index Calculation → Hyperliquid

1. Collection: Raw price and supply data from multiple sources

2. Validation: Outlier detection, staleness checks, sanity bounds

3. Aggregation: Weighted median across valid sources

4. Calculation: Index value computed per methodology

5. Delivery: Signed price updates posted to Hyperliquid

Index Methodology

Market Cap Indices (TOTAL2, OTHERS)

Index = Σ (Price_i × CirculatingSupply_i)

For each constituent asset:

• Price is the aggregated spot price in USD

• Circulating supply is sourced from on-chain data and verified providers

Dominance Indices (BTC.D)

BTC.D = (BTC_MarketCap / TOTAL_MarketCap) × 100

Expressed as a percentage with two decimal precision.

Constituent Selection

Index constituents must meet all of the following criteria:

• Top assets by circulating market cap with sufficient trading volume

• Consistent price feeds from multiple sources

• Not a stablecoin, wrapped token, or other non-qualifying asset

The constituent list is reviewed and rebalanced daily.

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
Infrastructure	Multi-region	Redundant geographic distribution
Failover	Automatic	Backup data source fallback
Monitoring	24/7	Alerting and incident response

Transparency

Paragon publishes:

• Current constituent list and weightings

• Index methodology documentation

• Historical index values

• Oracle performance metrics

Future: Decentralized Oracle Network

The $PARA token will enable a decentralized oracle network where:

• Validators stake tokens as collateral

• Accurate, timely updates earn fee rewards

• Faulty or late posts risk slashing

• Token holders can delegate to trusted operators

This model aligns oracle operators with data integrity through economic incentives.