Oracle
Last updated
Last updated
NFT collection prices are derived from a combination of in-house data collection and external data providers, most notably Reservoir. The price determination for each NFT collection involves analyzing its sales volume and current order book. This analysis is then used to calculate the approximate bid/ask midpoint. Subsequently, TWAPs are applied, their durations varying and tailored to each collection based on historical trading volume. Finally, these prices are updated on-chain and undergo a smoothing process via an EMA with a lookback window encompassing the three most recent updates.
The oracle updates under two conditions:
Heartbeat: The oracle will update prices if the last update has been longer than 12 hour.
Deviation: The oracle will update if the spot midpoint has deviated from the last update by more than 2%.
Price updates are restricted from exceeding 25% within the last update at the smart contract level, similar to the Compound v1 Oracle design
For all other assets, Fungify utilizes the Chainlink price feeds.