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)

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)

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.

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